KUALA LUMPUR: CIMB has taken a shine to QL, a leading integrated resource-based company involved in fish products, poultry and palm oil, which it said was trading at an undeservedly big discount to other consumer stocks despite stronger growth prospects and minimal earnings risks.
“We expect the stock to be re-rated given its substantial discount to the better-known consumer names and a refocus from dividend yields to growth as investor sentiment picks up after the General Elections. We initiate coverage with an Outperform call and a target price of RM4.55, based on a target CY14 P/E of 20.5x, after applying a 10% discount to the average consumer sector P/E of 23x CY14.
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