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Monday, August 22, 2011

EPMB - Delivering on Performance (OSK)

EPMB reported higher than expected earnings owing to lower taxation. The group continued to deliver commendable earnings growth, with 2Q PBT revving up 38% q-o-q, 32.7% y-o-y and 51.1% YTD, thanks to the significant improvements in operating efficiency at its stamping line. We see EPMB maintaining its production delivery in 2H, and see further earnings growth for FY12 as production of the Persona replacement kicks off. We maintain our earnings estimates as 1H PBT remains largely in line, and in anticipation of higher taxation come 2H. Our FV is retained at RM1.38, pegged at 7x FY11 EPS, with our BUY call maintained.

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