Daibochi’s earnings expected to grow

Meanwhile, KAF Equities Research noted that the group’s earnings, expected to grow at three-year CAGR of 16% between FY21-23F is driven by its integrated operations with Scientex and continuous research and development (R&D) to deliver innovative sustainable FPP solutions to its clients.

KUALA LUMPUR: KAF Equities Research is keeping its buy call on Daibochi Bhd with a target price of RM2.90 premised on capacity expansion activities and its integrated operations with Scientex Bhd in providing flexible plastic packaging (FPP) solutions to domestic and overseas clients.

As such, the research house has forecast the group’s top-line growth to grow at a three-year earnings compounded annual growth rate (CAGR) of 16% for financial year 2021 (FY21) and FY23 forecasts bolstered by increasing production capacity.