Ajiya’s overall performance came in within our expectations, with YTD net earnings accounting for 67% of our FY forecast. Although the annualized numbers were below estimates, we reckon its seasonally strong fourth quarter should lift earnings by year-end. Should the group maintain its 3Q performance in 4Q, Ajiya’s FY earnings may well fall within our expectations. We largely maintain our earnings estimates with a target price at RM1.72. Re-iterate BUY recommendation.
BUY maintained. We maintain our BUY recommendation for Ajiya in respect of its improving prospects going forward and its niche product segment. As there is no earnings adjustment or target price revision, we are maintaining our TP for Ajiya at RM1.72, which is based on a combination of Peer PER, Peer P/B and PEBD band. A 10% discount is also applied to the TP due to the stock’s low liquidity.
