KUALA LUMPUR (March 10): MIDF Amanah Investment Bank Bhd had today raised its Daibochi Bhd share target price to RM2.96 from RM2.94 after the packaging manufacturer reported yesterday its first-half net profit, which was within MIDF's expectation.  

In a note today, MIDF’s research team wrote that the research firm reiterated its "buy" call for Daibochi shares.

"While the group's prospects remain sanguine, the downside risks include high raw material prices, rising operating costs and fluctuations in the foreign exchange rates. All in, we are maintaining our 'buy' call for Daibochi,” the MIDF research team said.

Yesterday, Daibochi said in a Bursa Malaysia filing that net profit rose to RM15.1 million in the second quarter ended Jan 31, 2021 (2QFY21) from RM14.63 million a year earlier.

Cumulative 1HFY21 net profit increased to RM27.89 million from RM25.61 million a year earlier, according to the company.

Today, the MIDF research team said: "Daibochi’s net profit at RM27.9 million for 1HFY21 came in within our expectation, accounting for 55% of full-year estimate."

At Bursa’s 12:30pm break today, Daibochi’s share price fell one sen or 0.43% to RM2.34, which values the group at about RM766.02 million. Daibochi has 327.36 million issued shares.