KUALA LUMPUR: RHB Research has maintained its Buy on Thong Guan with a fair value of RM2.60, pegged on its fully-diluted FY15 EPS from the conversion of ICULS and warrants to an 11 times P/E, broadly in line with average peer target valuations of 12 times.
In a note on Monday, RHB said Thong Guan Industries’ share price went ex-ICULS and warrants on Sept 12, with its ex-all price adjusted by Bursa Malaysia.
"We make no changes to our earnings forecasts as the price adjustment does not have any accretive
or dilutive effect on earnings.
"However, we adjust our FV pursuant to the price adjustment by taking into account the enlarged share base of 184 million from the full conversion of ICULS and warrants from the existing share base of 105 million," it said
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