CENSOFT: Kenanga keep Trading Buy with TP RM1.60

Century Software Holdings Bhd (“CSHB”) has reported a good set of results, which is 20% above our estimate. We understand that the Group is soon officially launching the e-Bayaran portal. We are excited over the potential from e-Bayaran. We have revised up FY11 and FY12 earnings estimates to RM21.3m and RM28.3m from RM19.1m and RM25.3m, previously. Despite the recent run-up in share price, we continue to see values in CSHB. We value CSHB at 12.9x PER to its revised FY11 EPS of 12.4 sen, hence we upgraded 12-month target price to RM1.60 (from RM1.43 previously. Maintaining TRADING BUY.