Chan views the group’s ex-cash P/E of 5.2 times and FY2022 return on equity (ROE) of 15.7% as attractive. He has also kept his ‘buy’ call and 48 cents target price on the counter.
Local retailer and distributor of electrical products Choo Chiang Holdings (SGX:42E
) is poised to be a beneficiary of the construction recovery and a buoyant resale property market, according to Lim & Tan Securities analyst Chan En Jie in his March 22 report.
This is apparent in the group’s latest FY2022 ended Dec 31, 2022, results, which saw revenue growing by 10.3% y-o-y to $87.6 million, while profits gained 5.3% y-o-y to $9.0 million. Total dividend were at 2.2 cents, higher than 2.0 cents a year ago, representing a favourable 6.6% dividend yield based on the current share price.
