not vested
Stronger dose of earnings in 2HHovid’s 1HFY6/15 net profit made up 49% of our full-year forecast and 48% of consensus’.
This is deemed as above expectations, as sales in the second half of its financial year are seasonally stronger.
Moreover, the company should also benefit from the weaker ringgit given that half of its revenue is derived from the export market.
Hovid declared a dividend of 0.5 sen per share, which is in line with our forecast.
We raise our FY15-17 EPS forecasts by 4-7% to account for the better performance.
This lifts our SOP-based target price to RM0.45.
Nonetheless, we downgrade Hovid to Hold from Add as its share price upside is limited.
We prefer Pharmaniaga for higher upside.
Source: CIMB
https://brokingrfs.cimb.com/_A92ItG_dXh ... 3wAlw1.pdf
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