CI Holding 2Q2011 Result

1. Let's compare CI HOLDGINDS result against the average analyst expectation for FY2010:

Net income: Average analyst expectation FY2011 = RM42.83m, 1H2011 net income = RM23.05m
Earnings per share or EPS: Average analyst expectation FY2011 = 30.3 sen, 1H2011 EPS = 16.23sen
Overall, the 1H2011 Result is better than analyst expectation with 1H2011 net income already making 53.8% of consensus estimate

2. 2Q2010 net income of RM11.28m is an increase of 43% y-o-y but a 4% decrease qoq. In the announcement to Bursa, CIHLDG mentioned that "The higher profit after tax was mainly attributed to further economies of scale and prudent cost management"

3. Average analyst target price: RM4.81 as of time of writing, range of targetp price Range RM4.65 to RM4.90

4. Interim dividend of 5 sen less income tax of 25% was announced, ex-date = 16-Feb-2011

5. CI HOLDING BHD is trading at forward PER ending Dec 11of 10.89x, which is lower than F&N 16.63x.


My view: Overall, the 2Q2011 result is better than the market expectation. With RSI at 36.4 (almost Oversold), the time should have come for this share to move upwards.