AmInvest Research retains Hold for Hup Seng, FV 86 sen

AmInvest Research likes Hup Seng Industries for its dominant position in the local cream cracker segment (via Hup Seng Cream Crackers/Biskut Cap Ping Pong). However, the market for the product is saturated and competitive with low entry barriers.

KUALA LUMPUR: AmInvestment Research maintained its forecasts and Hold recommendation for Hup Seng Industries (HSI) and kept its fair value of 86 sen.

It said on Tuesday the 86 sen a share was based on an FY20F price-to-earnings of 16 times, three times multiples below its three-year average forward PE of 19 times to reflect the company’s unexciting growth prospects.