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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