UOBKayhian on 25 Feb 2014
FY14F PE (x): 25.0
FY15F PE (x): 20.9
Respectable showing in 2013 with goodies for shareholders. Excluding non- recurrent
gains (S$17.1m from the disposal of Sun Resources), the group’s 2013 net profit of
S$82.9m (+5% yoy) came in within our expectations. Management announced a final
dividend of 7.0 cents/share, bringing full-year dividends to 9.0cents/share (+27% yoy)
and a 1-for-1bonus issue.
HOLD for strong cash flow and being Asia consumption proxy. Maintain HOLD and
target price of S$3.87, based on peers’ average of 24.8x 2014F PE. We use PE rather
than PEG given the uncertain near-term outlook for markets, such as Thailand and
Indonesia. We would revisit our call when more positive datapoints from China emerge.
Entry price is below S$3.50.
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