Petra

Petra: OCBC notes since its initiation, the counter has appreciated by 7.5% to continue on its upward charge in 2012 (YTD: +55%). Says it valuation of Petra – pegged at 24x 12-mth fwd PE – is at a premium to its global peers but the desire of investors to gain exposure to emerging Asia consumer demand clearly vindicates it. For 2013, the house projects a modest top-line growth of 3.8%, mainly on the back of the Branded Consumer division, and margin improvements from the 7.6% in FY11 to ~9% by FY13F. OCBC raises its valuation multiple to 25x 12-mth fwd PE (one std dev above its 6-year average forward PE), lifts TP to $3.12 from $2.98 previously. Maintains Buy.