KUALA LUMPUR (Oct 25): CIMB IB Research has maintained “Add” on Power Root Bhd at RM1.50 with a higher target price of RM2.24 (from RM2.07) and said the group’s near-term focus is to drive profitability through: i) tighter cost control, ii) increased economies of scale, and iii) lower A&P expenses.

In a note Oct 24, the research house said it sees a weaker sales outlook given: i) lower contribution from exports, and ii) less emphasis on promotional activities in the local market.

“Hence, we cut our FY19-21F EPS by 7.9-9.1%. Maintain Add. Our target price rises to RM2.24 as we roll over our valuation to CY20F,” it said.