NEWSROOM

Daibochi

Initiation: Entering new growth phase

 

Initiate coverage on Daibochi with a Buy rating and TP of RM2.90. Valuation is pegged to 15x PE based on CY21F EPS. Our investment thesis includes 1) aggressive capacity expansion activities due to growing domestic and export markets; 2) integrated operations with Scientex which promotes production efficiencies; and 3) continuous R&D in providing innovative FPP solutions to domestic and overseas clients. We are projecting a three-year earnings CAGR of 16% for FY21-23F due to the above. Stock is currently trading at 12x PE which is -0.5SD below its five year-forward mean PE of 15x which we find the stock to be undervalued.

To read the full analyst report by KAF Equities, please click here.

Registered Office
SCIENTEX PACKAGING (AYER KEROH) BERHAD
No. 9, Persiaran Selangor,
Seksyen 15, 40200
Shah Alam, Selangor,
Malaysia

 

Tel No. : +60355248888/+60355191325
Fax No. : +603 5519 1884

Scientex Packaging (Ayer Keroh) Berhad 197201001354 (12994-W). All Rights Reserved.

News Room Initiation: Entering new growth phase