RHB Research Group analyst Jarick Seet remains optimistic on Fu Yu Corp’s future given its shift to higher profitability, healthy cash balance, and privatisation prospects.

He maintains his ‘buy’ rating for Fu Yu with a higher target price of 37 cents from 33 cents following a 7% rise in estimated FY2021 ending December PATMI on "a leaner cost structure and continuing shift towards higher margins".

“With $106.6 million in net cash and 5% FY2021 yield with good prospects – as well as a privatisation angle – we remain optimistic on Fu Yu Corp’s future and retain our recommendation on this stock,” he writes in an April 13 research note.

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