Good to hear that "it has witnessed an increase in demand for light-emitting diode (LED) street lighting, especially from government-related projects."
Maintain Add, with a higher TP of RM1.45 We lift our FY20-22F EPS by 2.0-4.6% to account for: i) higher interest income and ii) disposal of SEB. Our TP is raised accordingly to RM1.45, which is still based on 12x CY20 P/E, which is in line with its 5-year historical mean. We like STC for its: 1) attractive valuation of 8.1x CY20F P/E, 2) net cash of RM12.2m at end-FY6/19, 3) current 33.8% discount to NTA of RM1.48/share (end-FY6/19). The share price is supported by 4.1% dividend yield in FY19-21F. Re-rating catalyst: higher sales of street lighting. Downside risks: i) delay in public tenders for LED lights, and ii) sharp rise in operating costs.
From CIMB research. Target price of Success is RM1.45
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....
Endgame
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Posted by Endgame > 2019-08-30 20:02 | Report Abuse
Good luck!