Quoted from Maybank report:
1. Upgrade to Buy with a higher TP of MYR8.35, ahead of recoveries at
the automotive and O&G sectors, and on the back of a 10-11% rise in
2012-13 net profit forecasts. The disruption to the regional auto supply chain has abated while its O&G segment is at the cusp of a revival.
2. With market already absorbing the anticipated weak 1Q12 earnings
and its 2011 kitchen-sinking exercise, UMW now offers a recovery play
angle with modest growth (3-year EPS CAGR of 20%) and
undemanding valuations, supported by a decent dividend yield (6%).
3. We have raised our forecasts for Toyota vehicle
sales by 2-9% in 2012-13 to reflect an improved sales order outlook,
fuelled by its interesting launches ahead.
4. Net earnings lifted by 10-11% in 2012-13, incorporating the higher
profits from auto (+5-11%) and O&G (loss in 2011) divisions. We now
expect UMW to register a higher net profit of MYR723m in 2012 and
MYR812m in 2013.
This blog is related to observations regarding stocks traded in Malaysia. Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
No comments:
Post a Comment