KUALA LUMPUR (Nov 28): Affin Hwang Capital Research has maintained its “Buy” rating on AME Elite Consortium Bhd at RM1.94 with a higher target price (TP) of RM2.28 (from RM1.83) and said AME Elite’s 2QFY20 results were above house expectations.
In a note today, the research house said AME Elite’s net profit more than doubled to RM34.1 million in 6MFY20 driven by higher earnings for all divisions and a RM7.3 million fair-value gain on its investment properties.
Affin Hwang raised its core EPS by 6-13% for FY20-22E to reflect higher profit margins and property revenue.
“Despite the run-up in the share price, we believe its core FY20E PER of 14x is undemanding.
“We reiterate our BUY call with a higher 12-month TP of 2.28 based on an unchanged 30% discount to our upgraded RNAV estimate,” it said.
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