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Friday, May 16, 2014

RHB Research upgrades SKP Resources to Buy, raises fair value to 53 sen (Edge)

RHB Research has upgraded SKP Resources Bhd to a Buy (from Sell) with a higher fair value (FV) of 53 sen (from 18 sen) and said its recent meeting with the company’s management yielded positive surprises.

In a note Friday, the research house said the upgrade was premised on : i) robust 48%/36% earnings outlook for FY15-FY16F, underpinned by increased capacity of 75% from its new factory, and ii) increased orders for both existing and new products from its key customer, Dyson.

“Our new FV of 53 sen (from 18 sen) is based on 10x CY15 EPS,” it said.

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