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DBS remains positive on Fu Yu Corp's margin expansion and higher production, ups TP to 40 cents

Felicia Tan
Felicia Tan5/14/2021 11:47 AM GMT+08  • 2 min read
DBS remains positive on Fu Yu Corp's margin expansion and higher production, ups TP to 40 cents
The analysts say they are expecting Fu Yu's core earnings to increase in the FY2021.
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DBS Group Research analysts Chung Wei Le and Ling Lee Keng have maintained “buy” on Fu Yu Corporation as the company reported stable revenue of $34.7 million in the 1QFY2021 ended March and 23.2% higher gross profit of $8.5 million during the same period.

On this, the analysts have upped the company’s target price to 40 cents from 35 cents previously, as they raise their valuation peg to 15.2 times (+2 standard deviation or s.d.) FY2021 earnings, from 13 times previously.

This, they say, comes as they remain positive on Fu Yu’s margin expansion and higher production.

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