WELLCAL : [Stock Watch] [News] KENANGA Research has upgraded Wellcall to a “buy” and raised its target price to RM3.56. The new target price was reasonable, given its strong earnings, compounded annual growth rate of 34% between 2006 and 2008 and dividend yield of 4.4% at current levels. Its new RM19mil plant in Perak is able to ramp up production from 12,000 tonnes of industrial rubber hoses yearly to 19,000 tonnes. The production of industrial rubber hose is for the oil and gas, and agriculture sectors.
CHOOBEE : [Stock Watch] [News] ANALYSTS said Choo Bee Metal's outlook should remain fairly robust with steel demand increasing as more projects under the Ninth Malaysia Plan (9MP) commence by the second half of this year. OSK Research has maintained a "buy" call on the stock with a target price of RM2.80 despite Choo Bee Metal's weaker-than-expected first quarter results recently. The brokerage said: "We expect demand for square hollow sections, which enjoy better margins, to improve from 9MP demand and exports.''
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