2010 was a commendable year for CI Holdings (CIH) but 2011 is set to be even stronger given the company’s additional capacity, a wider distribution network and new product launches. Introduced in Dec 10, the Tropicana Twister blackcurrant drink is expected to expand the ready-to-drink blackcurrant market this year, taking on old favourite Ribena.
We maintain our EPS forecasts but raise our target price from RM4.90 to RM5.15 to reflect our revised target market P/E of 14.5x (13.8x previously). CIH remains a BUY and our top pick in the F&B sector, thanks to the potential re-rating catalysts of 1) an increasingly marketable product line, and 2) M&A. We view the recent share price weakness as a buying opportunity.
We maintain our EPS forecasts but raise our target price from RM4.90 to RM5.15 to reflect our revised target market P/E of 14.5x (13.8x previously). CIH remains a BUY and our top pick in the F&B sector, thanks to the potential re-rating catalysts of 1) an increasingly marketable product line, and 2) M&A. We view the recent share price weakness as a buying opportunity.
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