Manpower shortage continues to pose a threat to Jadason's earnings ahead

SINGAPORE (Nov 13): CIMB Research continues to rate Jadason Enterprises at “add” with a lower target price of 11 cents after rolling over its valuation basis to FY19F estimates, still based on 12.34 times P/E – which is 2 s.d. above the average forward P/E during the FY04-07 earnings recovery cycle.

This comes after the group last week reported 3Q17 and 9M17 revenue in line at 28% of 73% of CIMB’s FY17F estimates, respectively, although net profits for the two periods came in below full-year expectations at 26% and 51%.