yes maybe but bursa is full of speculators who can't differentiate this, they follow sentiments. over the long run it should do well but for now there could be some downward pressure.
CB Industrial Product Holding Bhd (CBIP) has announced that its unit Modipalm Engineering Sdn Bhd has been awarded a contract worth RM50.3m. CBIP said the contract was from TDM Bhd subsidiary PT Rafi Kamajaya Abadi for a continuous sterilisation palm oil mill project in Nanga Pinoh Melawi, Kalimantan Barat, Indonesia.
We are initiating coverage on CB Industrial Product Holding ("CBIP") with an OUTPERFORM rating and TP of RM3.18 (implying a potential total return of 18.2%). CBIP is the biggest and the only listed palm oil mill construction company in the world with sizeable market cap of RM740m. We like CBIP due to: (i) it is poised to capture strong demand for palm oil mills in 2014, (ii) steady margin improvement as its MCSP technology gained global recognition, (iii) superior margin against other Malaysia specialized contractors, (iv) decent dividend of 4.2% and (v) strong balance sheet with net cash of RM128m. We estimate FY13E-FY14E net profit of RM86.1m (+1% YoY) – RM94.9m (+10% YoY). In our view, the stock is ripe for a PER re-rating upwards due to its superior margin and decent dividend yield. It is also a good diversification play in the current low CPO prices' environment while maintaining proxy to the plantation sector.
TP does not mean anything but only as a guide . When u r making , just run for your life will be safer . I do not believe in a very long term play as the market is too volatile.
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....
haikeyila
1,068 posts
Posted by haikeyila > 2013-09-12 10:43 | Report Abuse
yes maybe but bursa is full of speculators who can't differentiate this, they follow sentiments. over the long run it should do well but for now there could be some downward pressure.