Friday 29 Mar 2024
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KUALA LUMPUR (Nov 14): Yee Lee Corp Bhd (Yee Lee), a Perak-based edible oil packaging company saw its share price race up to a high of RM1.58 in early trade today after over 300,000 shares were traded.

At 10.58 am, Yee Lee’s stock price settled at RM1.56, up 9 sen or 6.12%.

In a research note published on Nov 13, 2014, Kenanga Research called the company an “under appreciated jewel” which is “deeply undervalued”.

“Yee Lee is undervalued as it is trading at historical price-earnings ratio (PE) of 7.6 times or 57% discount to its peer average historical PE of 17.9 times. In addition, Yee Lee is trading below its book value of RM1.90.”

“We believe that these discounts are not justified due to its growth prospect and strong profitability track record,” said the research house.

Besides that, Kenanga expects the company to do better in 2H14 with earnings from the manufacturing and trading divisions improving.

Kenanga Research gave the company a target price of RM2.10 and a ‘Trading Buy’ rating.

“Overall, we expect potential total returns of 46.9% (upside 44.8% and dividend yield of 2.1%) from here,” it said.

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