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Stock Code/Name: 7053 / SEEHUP FBM Index: FBM Small Cap Index
All information, views and advice are given in good faith but without legal responsibility. Mercury Securities Sdn. Bhd. or companies or
individuals connected with it may have used research material before publication and may have positions in or may be materially interested in
any stocks in the markets mentioned.
This report has been prepared by Mercury Securities Sdn Bhd for purposes of CMDF-Bursa Research Scheme ("CBRS") administered by
Bursa Malaysia Berhad and has been compensated to undertake the scheme. Mercury Securities Sdn Bhd has produced this report
independent of any influence from CBRS or the subject company. For more information about CBRS and other research reports, please visit
Bursa Malaysia’s website at: http://www.bursamalaysia.com/website/bm/listed_companies/cmdf_bursa_research_scheme/
Mercury Securities Sdn Bhd (Page 2/2) 31 May 2010
OUTLOOK
Given a brighter outlook for the global and domestic Figure 1: See Hup’s Share Price Movement
economies as well as a fast improving external since Mid-2008
trading (export and import) prospect, we believe that 1.20
0.95
However, given the weaker final results and coupled
RM/share
with the potential reduction in the fuel subsidies, we 0.90
out the possibility of the Group seeing its net gearing 0.70
05/08/2008
19/08/2008
02/09/2008
16/09/2008
30/09/2008
14/10/2008
28/10/2008
11/11/2008
25/11/2008
09/12/2008
23/12/2008
06/01/2009
20/01/2009
03/02/2009
17/02/2009
03/03/2009
17/03/2009
31/03/2009
14/04/2009
28/04/2009
12/05/2009
26/05/2009
09/06/2009
23/06/2009
07/07/2009
21/07/2009
04/08/2009
18/08/2009
01/09/2009
15/09/2009
29/09/2009
13/10/2009
27/10/2009
10/11/2009
24/11/2009
08/12/2009
22/12/2009
05/01/2010
19/01/2010
02/02/2010
16/02/2010
02/03/2010
16/03/2010
30/03/2010
13/04/2010
27/04/2010
11/05/2010
increased from 68.2% (from FY10A) to 80.1% (in
FY11F). Coupled with a higher interest rate
environment in the future, the profitability of the Source: Bloomberg
Group could be further eroded, we reckon.
VALUATION
Based on the current share price of RM1.00/share,
the stock is traded at a stretched 30.9x and 30.5x
historical FY10 PER and forward FY11 PER
respectively.
Results Coverage
This report has been prepared by for purposes of CMDF-Bursa Research Scheme ("CBRS") administered by Bursa Malaysia Berhad and has
been compensated to undertake the scheme. Mercury Securities Sdn Bhd has produced this report independent of any influence from CBRS or
the subject company. For more information about CBRS and other research reports, please visit Bursa Malaysia’s website at:
http://www.bursamalaysia.com/website/bm/listed_companies/cmdf_bursa_research_scheme/