KUALA LUMPUR (June 24): SJ Securities Research has upgraded Scientex Bhd to Overweight (from Neutral) at RM5.88 with a higher target price of RM7.07 (from RM6.26), and said it was tweaking its FY15 earnings forecast from RM83.98 million to RM93.74 million for the company’s manufacturing segment, given the better than expected profit contributions from GW post-acquisition as well as the expansion plans that has successfully boosted the group’s organic growth.
In a note Tuesday, the research house said that for property segment, it was revising upward its earnings forecast division from RM64.79 million to RM74.17 million for FY15 underpinned by the current strong unbilled sales of RM568.9mn and continued high demand for its well-priced housing.
“We upgrade our call from Neutral to Overweight with a revised target price of RM7.07 based on SOP method, implying an upside 20.2% from yesterday closing price.
“We are yet to impute the earnings contribution from Seacera Polyfilm as we only expect to see meaningful contributions after FY15,” it said.
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