OSK Keeps Pantech At Trading Buy, MYR0.79 Target

OSK Research maintains a Trading Buy on Pantech Group Holdings (5125.KU), with a price target of MYR0.79. The house lowers its earnings forecasts by 24.2% for FY12 to MYR38.6 million, and 5.1% for FY13 to MYR53.7 million; it rolls over valuation to CY12 forecast earnings per share on 7X PER. The company recently started Pantech Stainless & Alloy Industries, a subsidiary producing stainless steel pipes and fittings. "We remain positive on this venture, though some short term dampeners include initial start up costs and the time lag impact from announcement to implementation of O&G projects," the house says. It adds, the unit will help the company in moving into higher margin value added products. The stock is up 1.6% at MYR0.630.