KLSE (MYR): CTOS (5301)
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Last Price
1.29
Today's Change
+0.03 (2.38%)
Day's Change
1.26 - 1.30
Trading Volume
7,210,600
2024-11-22
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CurryBento
346 posts
Posted by CurryBento > 2022-04-27 13:45 | Report Abuse
Management remains bullish on its outlook during the post-results conference call yesterday.
Overall, top-line growth trajectory is expected to stay robust and profit margins are seen to expand in
upcoming quarters. As for the delay in tax incentive renewal, we are not particularly worried
since this is not idiosyncratic to CTOS alone and the approval process is typically a lengthy one.
Separately, we are positive on the additional 9.1% stake increase in RAM, considering it is a
fair and accretive deal. All in, our forecasts were unchanged.
We still like CTOS for its market leadership, strong economic moat, and highly scalable business model.
Retain BUY and FCFF-TP of RM1.95, based on an implied 52x FY23 P/E.