Mewah: Daiwa reiterate Hold with TP $0.46. House note that stock is trading currently at a P/E of about 10x and a P/B of 1x, on 2012 estimates, and at 7x the 2012 consensus EPS estimate.
Multiples are well below large refiners and traders. Upside risks would be a significant rise in refining margins, because either Mewah increases the level of speciality fats in its product mix or refineries shut down due to lack of profits. Downside risks could come from a loss of market share in Co’s consumer-pack business or margin pressure.
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