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Monday, February 22, 2016

CIMB Research keeps Add on Only World Group, trims target to RM4.06

KUALA LUMPUR (Feb 22): CIMB IB Research has maintained its “Add” rating on Only World Group Holdings Bhd (OWG) at RM2.46 with a lower target price of RM4.06 (from RM4.11) and said OWG’s 1HFY16 EPS formed 39% of house full-year estimate but we deem this in line as 2H should be much stronger when Komtar’s earnings kick in post-opening.

In a note Feb 21, the research house said OWG’s strong y-o-y and q-o-q performance was driven by: 1) the opening of 59Sixty at Komtar, 2) the acquisition of Escape Room, and 3) the opening of Jungle Gym, Atria Mall.

“Reduce FY16-18 EPS by 1-3% for placement dilution, mitigated by interest savings.

“Maintain Add rating with slightly lower target price, still based on 22.5x CY17 EPS (sector average). Komtar’s opening is a potential re-rating catalyst,” it said.

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