• Malaysia stock market and companies daily report (September 17, 2015)

    - SKP Resources secured another five-year contract from its key client Dyson, this time round also for the manufacturing of cordless vacuum cleaners, though presumably of a different variant.

    - The award comes in addition to a RM400 million five-year contract which it secured back in May.

    - While no quantum was revealed, PublicInvest Research notes that there could be a chance of upside earnings surprises should the contract value be larger than expected.

    - The research house is also of the view Dyson’s expected growth in the next few years would likely benefit the group, who is a key manufacturing partner of Dyson.

    Coupled with increased capacity arising from newly acquired subsidiaries and from its own expansion, PublicInvest Research foresees an earnings compound annual growth rate of at least 50 percent in the next three years for SKP. Thus, the research firm has maintained its ‘Outperform’ call on the stock, with a target price of RM1.71.

    Contributed by Shares Investment
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