KUALA LUMPUR (Jan 17): Affin Hwang Capital Research has initiated coverage on Scientex Bhd at RM8.80 with a “Buy” rating and RM10.10 price target.

In a note today, the research house said Scientex is a Top 5 global player in stretch film packaging and a leading developer of affordable homes in Peninsular Malaysia.

“We like its impeccable earnings track record and execution, largely attributable to its solid management team.

“Riding on global demand for stretch films and a successful property strategy, we forecast a FY18-21E EPS CAGR of 10.2%.

“At 12.7x FY20E, valuation looks attractive and shares could further re-rate amidst its yet limited institutional ownership,” it said.