KUALA LUMPUR: OSK Research is maintaining its target price for Supermax at RM10.00 for now, which is based on 15x FY11 EPS after it announced a one for four bonus issue to reward shareholders.
The research house said on Thursday, March 4 the 1:4 bonus issue is more to reward its shareholders than to enhance the liquidity of its shares as Supermax is already one of the most liquid rubber glove stocks, with an average 3-month volume of more than three million shares compared with its peers.
Top Glove, Kossan and Hartalega have an average three-month volume is below one million shares.
Nevertheless, completion of the 1:4 bonus issue will increase its share capital from 271 million shares currently to 342 million shares.
“Our ex-bonus fair value will be revised down to RM8 while the theoretical share price will adjust to an ex-bonus RM4.94, thus still providing significant upside,” it said.
About Me
- Nuang
- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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