Full report can be downloaded from this link:
https://drive.google.com/file/d/1TRpFN8zv3_BIgQ5bpT8xBn-G9kEjgcoh/view?usp=sharing
Huat and cheers,
Infinity888
https://klse.i3investor.com/blogs/Supermax_TP_UOB/2020-07-06-story-h1509772900-Supermax_Corporation_Berhad_UOB_TP_RM_17_60_Shine_bright_like_a_diamond.jsp
https://drive.google.com/file/d/1TRpFN8zv3_BIgQ5bpT8xBn-G9kEjgcoh/view?usp=sharing
Valuation
Initiate coverage with a BUY and target price of RM12.40, pegged to 15.0x FY21F PE. While its peers are trading at an average of 34.7x FY21F PE, Supermax should be pegged to +0.5SD of its 5-year historical mean. While this is still a discount to peers, valuations are based on the peak earnings cycle. However, our blue sky scenario entails Supermax potentially trading at 21.3x or +2SD of its 5-year mean on a potential entry to the FBMKLCI Index. It implies a target price of RM17.60.
Initiate coverage with a BUY and target price of RM12.40, pegged to 15.0x FY21F PE. While its peers are trading at an average of 34.7x FY21F PE, Supermax should be pegged to +0.5SD of its 5-year historical mean. While this is still a discount to peers, valuations are based on the peak earnings cycle. However, our blue sky scenario entails Supermax potentially trading at 21.3x or +2SD of its 5-year mean on a potential entry to the FBMKLCI Index. It implies a target price of RM17.60.
Huat and cheers,
Infinity888
https://klse.i3investor.com/blogs/Supermax_TP_UOB/2020-07-06-story-h1509772900-Supermax_Corporation_Berhad_UOB_TP_RM_17_60_Shine_bright_like_a_diamond.jsp
