Quick take: Uchi Technologies rises 2.5% after target price raised

KUALA LUMPUR: Shares in UCHI TECHNOLOGIES BHD rose 2.5% in early trade Monday after a brokerage raised its target price on the stock to RM3.30.

The counter, one of the top gainers on Bursa Malaysia, rose 2.5%, or seven sen to RM2.87. It is currently trading at a PE ratio of 18.39 times.

CGS-CIMB Research has maintained its “add” rating on Uchi Technologies with a higher target price of RM3.30 from RM3.06.

The research house said Uchi’s 9M19 core net profit beat expectations at 77% of house FY19F and 76% of Bloomberg consensus due to better-than-expected earnings in 3Q19.

Affin Hwang Capital has maintained its “buy” call on Uchi with an unchanged target price of RM3.09 (based on17x2020E EPS).

“Uchi’s 9M19core profit of RM57mil was within expectations, accounting for 73% and76% of our and street full-year forecasts.

“The stronger performance all round was driven by growth of its key customer, Jura, which we understand is penetrating into new markets and new product segments, and thus driving the growth of Uchi’s coffee modules for such automated coffee machines, ” Affin said.

Source: TheStar