I maintain my projections that DKSH should reach RM7.00 in 6 months and even RM10.00 in blue sky scenarios within 2 years.
With major shareholders holding over 75% stakes, DKSH is itself a prime target for privatisation. Pegging a FY2021 PER of 10x, I expect a take-over price not less than RM6.00. DCF based valuation would take it to beyond RM7.00 for any meaningful acceptance.
It is a solid company with earnings growth and margin expansion over next few quarters as more economic sectors reopen and cost optimisation efforts continue to bear fruits.
Maintain my first target price at RM7.00 which may be achieved by year end as more analysts upgrade and more fund managers see value in this counter as its market cap exceeds RM800 million.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
dragon328
2,487 posts
Posted by dragon328 > 2021-09-21 10:40 | Report Abuse
I maintain my projections that DKSH should reach RM7.00 in 6 months and even RM10.00 in blue sky scenarios within 2 years.
With major shareholders holding over 75% stakes, DKSH is itself a prime target for privatisation. Pegging a FY2021 PER of 10x, I expect a take-over price not less than RM6.00. DCF based valuation would take it to beyond RM7.00 for any meaningful acceptance.