In line; reiterate OUTPERFORM. Tomypak’s FY10 core net profit came in at 102% of our forecast (consensus numbers not available). The 1.4 sen final tax-exempt DPS was within our expectations and took the full-year net DPS to 5.6 sen. We are maintaining our EPS forecasts while introducing one for FY13. Our RM1.80 target price is intact as we continue to value the stock at 7.1x, a 30% discount to Daibochi’s CY12 target P/E of 10.1x. The stock remains an OUTPERFORM as it could be catalysed by i) a further recovery of margins, ii) the high dividend yield of above 8% and ii) stronger-than-expected revenue.
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