SIGN (7246) : CIMB Research maintains Add on Signature, ups target price to RM3.12
KUALA LUMPUR (Nov 25): CIMB Research has maintained its Add rating on Singature International Bhd at RM1.74 with a higher target price of RM3.12 (from RM2.63) and said Signature’s 1QFY6/15 core net profit was above house expectations, at 114% annualised, mainly due to stronger topline growth.
In a note Nov 24, the research house said it was raising its FY15-17 EPS by 18%-25% to reflect the stronger topline growth.
“With the year-end just ahead, we roll our valuation to CY16 EPS, lifting our target price, still based on 30% discount to SOP (the discount to reflect its small cap and tight trading liquidity).
“The stock remains an Add and potential re-rating catalysts include securing more major contracts and further profit margin expansion,” it said.
http://www.theedgemarkets.com
KUALA LUMPUR (Nov 25): CIMB Research has maintained its Add rating on Singature International Bhd at RM1.74 with a higher target price of RM3.12 (from RM2.63) and said Signature’s 1QFY6/15 core net profit was above house expectations, at 114% annualised, mainly due to stronger topline growth.
In a note Nov 24, the research house said it was raising its FY15-17 EPS by 18%-25% to reflect the stronger topline growth.
“With the year-end just ahead, we roll our valuation to CY16 EPS, lifting our target price, still based on 30% discount to SOP (the discount to reflect its small cap and tight trading liquidity).
“The stock remains an Add and potential re-rating catalysts include securing more major contracts and further profit margin expansion,” it said.
http://www.theedgemarkets.com
