AmInvestment raises earnings forecast on Luxchem

KUALA LUMPUR: AmInvestment Bank Research has raised its FY21-22 earnings forecast on Luxchem Corp Bhd after having reflected the impact of an ongoing private placement and acquisition.

Taking also into consideration the sustained appetite for glove-related stocks, the research raised its fair value by 6% to 84 sen from 79 sen based on 14x revised forecast FY21, which is at 2x multiple-premium to its average historical forward price-earnings of 12x.