Eing likes the specialty chemicals provider for its strong corporate governance, prudent management and its presence in a resilient industry, and is expecting the group to deliver top and bottomline growth in the next three years.
SINGAPORE (June 26): SAC Advisors is starting coverage on Megachem at “buy” with a target price of 50 cents, which translates into 14.9 times FY19P/E to imply a 26% discount to the sector average.
In an initiation report on Tuesday, analyst Eing Kar Mei highlights the speciality chemicals provider as a proxy to the stronger global economy with an attractive dividend yield of 4.8-5.7%.
