KUALA LUMPUR: OSK Research expects GUINNESS ANCHOR BHD (GAB) to post another set of healthy earnings for FY11.
“Although we did not make changes in our sales forecast following our last visit to the company, we are however lowering our operating cost assumption based on cheaper raw materials and lower excise duties,” it said on Tuesday, Jan 25.
OSK Research said the resulting higher earnings estimates and lower WACC assumption to 7.8% from 8.8% buoys our DCF target price to RM9.97 from RM7.97 previously.
“GAB is maintained a NEUTRAL. Given our revised dividend assumption, the stock will provide a net yield of 4.9% for FY11,” it said.