KUALA LUMPUR (August 16): Kenanga Research has upgraded BP Plastics Holding Berhad to Outperform at RM1.28 with a higher target price (TP) of RM1.63 (from RM1.31) and said BP Plastics’ 1HFY22 results met house expectations but beat consensus estimates.

In a note on Tuesday (Aug 16), the research house said it rolled forward its  valuation base year to FY23F to better reflect its growth potential.

“Over the immediate term, its growth will be driven by the commissioning of its tenth cast stretch film line in 4QCY22.

“It has also earmarked two coex blown film lines to strengthen the production of food packaging and shipping and logistics packaging film.

“Our TP is raised by 24% to RM1.63 (from RM1.31) based on 9x FY23F PER,” it said.