TomyPak (cont-ed) 2

I Just dig out from cimb research and would like to share with you few point.

Tomypak remains an OUTPERFORM with an unchanged
target price of RM4.96, based on a 30% discount to our 12x target P/E for Daibochi.
The share price weakness following the poor 2Q10 results is a buying opportunity.
Factors that could catalyse the stock include margin recovery and the approved share
split and bonus issue.

Among the lowest P/Es in small-cap coverage. In our small-cap universe, Tomypak
remains one of the cheapest, with a CY11 P/E of only 5.9x compared to an average of
9x for our small-cap universe. The gross dividend for FY11 is an attractive 6.2% but
could be higher if the net dividend payout ratio turns out to be higher than our 27%
forecast.

I always believe buy something with extra discount -- buy honda accord with myvi price, how you like it ? Provided it's a high performance, reliable & stable car. Is tomypak match all of these ?! If tomypak PE race to somewhere near PE11/12, our return will be somewhere near 100%.


Cimb Report