KUALA LUMPUR (July 18): Mercury Securities Sdn Bhd has initiated coverage of Cnergenz Bhd, with a “buy” recommendation at 47 sen, with a target price of 66 sen based on earnings per share of 3.8 sen forecast for the financial year ending Dec 31, 2023 (FY23) and peers' average price-earnings of 17.3 times. “The target price represents a potential return of 40% from the current price,” it said. Mercury said Cnergenz had an order book of RM147 million as of May 31, 2022, expected to be fully recognised within the second half of 2022. “Under the leadership of chief executive officer Lye Yhin Choy, who is responsible for the overall management and business operations of Cnergenz, the company was able to achieve a three-year revenue CAGR of 9% from FY18 to FY21 (excluding customer K & H for FY18 and FY19), despite the Covid-19 pandemic in FY20,” it said. At 9.54am, Cnergenz had risen 3.16% or 1.5 sen to 49 sen, with 279,300 shares traded.

Source: The Edge Markets July 18, 2022 08:33 UTC