04/09/2012 (The Star) - OSK Research has initiated coverage on CB Industrial Product Holdings Bhd (CBIP) with a fair value of RM3.28, pegged at a five-year average price-to-earnings ratio (PER) of 9.4 times on its FY13 earnings.

It said on Tuesday the palm oil mill specialist's fundamentals are underpinned by high profits from its palm oil equipment projects and its growing orderbook in modipalm mills especially in Indonesia.

"Despite losing revenue contribution from its plantation segment, 1HFY12 results were commendable," it said.

OSK Research said stripping off the gains from its discontinued plantation operations in Sarawak, the company's 1H net income remained strong with a healthy growth of 68% at RM45.4mil, boosted by thriving mill construction sector and improved margins.