UZMA (7250) : Setegap Ventures stake to boost Uzma earnings, says HLIB Research
KUALA LUMPUR (Dec 8): Hong Leong IB Research has maintained its “Buy” rating on Uzma Bhd with an unchanged target price of RM2.52 after the company proposed to further acquire 18.98% stake in Setegap Ventures Petroleum (SVP), increasing its stake from 30.02% to 49%.
In a note Monday, the research house said the acquisition implied 10x FY13 P/E and 9.1x FY14 P/E which it deemed as fair.
“We expect SVP earnings to grow by 10% in FY14 and the acquisition will increase FY14 EPS and FY15 EPS by 6% and 3% respectively.
“We maintained our Buy call with unchanged target price of RM2.52, based on 11x P/E,” it said.
http://www.theedgemarkets.com
KUALA LUMPUR (Dec 8): Hong Leong IB Research has maintained its “Buy” rating on Uzma Bhd with an unchanged target price of RM2.52 after the company proposed to further acquire 18.98% stake in Setegap Ventures Petroleum (SVP), increasing its stake from 30.02% to 49%.
In a note Monday, the research house said the acquisition implied 10x FY13 P/E and 9.1x FY14 P/E which it deemed as fair.
“We expect SVP earnings to grow by 10% in FY14 and the acquisition will increase FY14 EPS and FY15 EPS by 6% and 3% respectively.
“We maintained our Buy call with unchanged target price of RM2.52, based on 11x P/E,” it said.
http://www.theedgemarkets.com
