At 4.37pm, the stock pared some of its gains and was trading at RM2.47, up 16 sen or 6.93%, with 2.57 million shares done. It was the 9th top gainer across the local bourse today.
The current price is up 42.78% from its price of RM1.73 on Feb 9. In the past twelve months, the stock has risen 75.17% from RM1.41.
TA Securities, in a note to clients this morning, said it expects Signature’s core profit to surpass RM30 million to reach between RM32.5 million and RM38.8 million for its financial year ending June 30, 2015 (FY15) and FY16.
Signature (fundamental: 2.3; valuation: 1.8), which is principally involved in design, marketing and distribution of kitchen systems, wardrobe systems and built-in kitchen appliances, recorded core profit of RM16.6 million in 1HFY15, up 207% on-year, due to project revenue growth and economies of scale.
TA Securities said there are favourable housing trends for premier kitchen players, and Signature has strong branding, execution power and manufacturing outsourcing model.
“We are initiating coverage on the company with a BUY recommendation. We derive a target price of RM3.22 per share, based on 10 times its FY16 EPS (earnings per share). This represents an attractive capital upside of 41%,” said the research house.
SIGN (7246)
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