PRESHLD - On Course to a Record Year (OSK)

We met Prestariang’s management recently for our regular update. Overall, we expect the company’s 4QFY11 results to be in line with our estimates and are turning increasingly upbeat on its future prospects owing to growing adoption of its self-developed solutions. Given the stock’s improved liquidity, which is likely to draw more interest, we are now pegging a higher FY12 PER of 8x versus 6x previously. This brings our FV to RM1.38, based on a revised FY12 EPS of 18.7 sen. Maintain BUY with >50% upside on top of an appealing yield of >10% p.a.