KUALA LUMPUR: RHB Research has a Buy call on plantation company TSH Resources Bhd with RM1.25, which is a 16% upside, while it increased the FY20-21F earnings by 1%-2%, after imputing new fresh fruit bunches (FFB) revisions, capex and in-house forex assumptions.
It said on Wednesday the RM1.25 was based on 16 times FY21F P/E for its upstream division, and 0.5 times price-to-book value (P/BV) for its other divisions.
“Our TP implies an enterprise value/ha of US$12,000, in line with its peer range of US$10,000 to US$15,000/ha. We believe valuations remain undemanding, as TSH is trading at 17 times P/E (within the small-cap peer range of 11 to 18 times), while FFB growth and earnings prospects remain solid.
KUALA LUMPUR: RHB Research has upgraded Duopharma Biotech to Buy from Sell with a new discounted cashflow-derived target price of RM4 from RM3.30 on the clarity of its Covid-19 vaccine participation in Malaysia.
The research house said on Thursday Duopharma’s prospects of participation in the vaccine had increased significantly after the government’s announcement on Tuesday.
It also pointed out the company’s human insulin contract has also been extended.
RHB Research noted a news report Science, Technology and Innovation Minister Khairy Jamaluddin as saying: “the next could be Duopharma as the company is in talks with a Russian vaccine candidate”.