Hartalega Holdings Bhd leads on analyst revisions
among eight companies in Malaysia's healthcare sector tracked by
at least three analysts, data from Thomson Reuters StarMine
The glove manufacturer has an Analyst Revision Model (ARM)
score of 98, the highest in the sector. This score has increased
40 points over the past 30 days.
It has high Smartholdings and Earnings Quality scores of 94
and 80 respectively. The former suggests a potential increase in
institutional ownership while the latter implies good earnings
sustainability over the next 12 months.
Hartalega's forward 12-month EV/EBITDA and P/CF ratios beat
industry averages by 2 percent and 9 percent respectively. Its
quarterly net income grew 28 percent to 59 million ringgit
between September 2011 and 2012 while its quarterly free cash
flow rose 27 percent to 42 million ringgit during the same
Seven of 13 analysts tracking the stock have raised EPS
estimates on the firm for 2013 by an average of 3.3 percent
since Nov. 7. Eight of the 13 have also increased EPS estimates
for 2014 by an average of 5.1 percent during the same period.
Of the 12 analysts rating the stock, seven give it a "strong
buy" or "buy", four have a "hold", while one recommends a "sell"
Hartalega currently trades at an all-time high of 5 ringgit,
around 86 percent of its intrinsic value of 5.79 ringgit. The
stock price has risen nearly 80 percent over the past 12 months,
while the broader index gained over 10 percent during
the same period, as of Thursday's close.
On the other end of the spectrum, Adventa Bhd lags
the sector with an ARM score of 22.
On Nov. 7, The company said second-quarter net profit rose
27 percent on year to 58.6 million ringgit, while revenues
increased 11 percent to 763 million ringgit.
StarMine's Analyst Revision Model ranks stocks based on
analysts' revision of earnings and revenue estimates and changes
in their ratings, and usually gives additional weight to
analysts who have been more accurate in the past.
The StarMine SmartHoldings model is a global stock selection
model that ranks stocks based on the expected future increase,
or decrease, in institutional ownership.
A high score on StarMine's Earnings Quality model signals
strong earnings sustainability over the next 12 months based on
a company's past operating performance.
(Reporting By Reshma Apte; Editing by Sunil Nair)