UOB Kay Hian starts coverage of NATGATE 0270 NATIONGATE HOLDINGS BERHAD, target price at 98 sen

UOB Kay Hian starts coverage of  NATGATE 0270 NATIONGATE HOLDINGS BERHAD, target price at 98 sen

KUALA LUMPUR (Jan 12): UOB Kay Hian Securities has initiated coverage of ACE Market-bound NationGate Holdings Bhd with a "buy" rating at 38 sen and target price (TP) of 98 sen and said the stock is listing at an undemanding 13.8 times 2021 price-earnings.

In a note on Wednesday (Jan 11), the research house said it sees multiple legs of growth that can supercharge a three-year revenue/core net profit compound annual growth rate of 24%/30%, premised on cross value-chain integration, trade-diversion related supply chain reconfiguration and aggressive expansionary plans.

“While NationGate can offer high-mix low-volume and low-mix high volume production set-ups, its strategic diversification towards recession-proof segments has borne fruition, especially amid the current economic downturn

“We initiate coverage with 'buy'. Target price: 98 sen,” it said.

http://www.theedgemarkets.com/node/651452