in 4QFY20 as orders from key customers have returned to pre-Covid levels while the final quarter is seasonally strong for the group. The research house, which has a "market perform" recommendation on the group is also positive on its recovery momentum going into FY21 as JHM's eyes 25% year-on-year order growth from its existing customer owing to improving car sales. It added that the order growth could potentially rise further from two or three more new prospects that are still at the qualification phase. On JHM's new customer, Kenanga said the current orders at hand are estimated to be about 8% of the group's FY21 revenue and could potentially grow 4x by 2022 upon securing the supply of PCBA and model assembly, which will require high-end SMT machines. Kenanga maintained a FY20 and FY21 net profit of RM24mil and RM49.8mil respectively. However, its target price was raised to RM2.35 from RM2 previoulst as it gactored in a higher FY21 price-earnings ratio of 26x on greater interest from institutional clients post its Main Market transfer.
Kenanga expects further sales recovery for JHM
KUALA LUMPUR: Kenanga Research anticipates earnings growth for JHM Consolidation Bhd in 4QFY20 as orders from key customers have returned to pre-Covid levels while the final quarter is seasonally strong for the group. The research house, which has a "market perform" recommendation on the group is also positive on its recovery momentum going into FY21 as JHM's eyes 25% year-on-year order growth from its existing customer owing to improving car sales. It added that the order growth could potentially rise further from two or three more new prospects that are still at the qualification phase. On JHM's new customer, Kenanga said the current orders at hand are estimated to be about 8% of the group's FY21 revenue and could potentially grow 4x by 2022 upon securing the supply of PCBA and model assembly, which will require high-end SMT machines. Kenanga maintained a FY20 and FY21 net profit of RM24mil and RM49.8mil respectively. However, its target price was raised to RM2.35 from RM2 previoulst as it gactored in a higher FY21 price-earnings ratio of 26x on greater interest from institutional clients post its Main Market transfer.
in 4QFY20 as orders from key customers have returned to pre-Covid levels while the final quarter is seasonally strong for the group. The research house, which has a "market perform" recommendation on the group is also positive on its recovery momentum going into FY21 as JHM's eyes 25% year-on-year order growth from its existing customer owing to improving car sales. It added that the order growth could potentially rise further from two or three more new prospects that are still at the qualification phase. On JHM's new customer, Kenanga said the current orders at hand are estimated to be about 8% of the group's FY21 revenue and could potentially grow 4x by 2022 upon securing the supply of PCBA and model assembly, which will require high-end SMT machines. Kenanga maintained a FY20 and FY21 net profit of RM24mil and RM49.8mil respectively. However, its target price was raised to RM2.35 from RM2 previoulst as it gactored in a higher FY21 price-earnings ratio of 26x on greater interest from institutional clients post its Main Market transfer.
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