We are OVERWEIGHT on the retail sector. Besides the favorable outlook, the sector is one of the highest dividends yielding, which makes it a good pick in anticipation of a volatile 2H10. Our top pick is Parkson Holdings (PHB) (BUY, TP 6.75), which is poised to ride on the strong recovery in China’s domestic consumption and Zhulian (BUY, TP RM3.77), given its solid fundamentals compared to its peers, as well as its attractive dividend yield.
Below are the target price for consumer product sector.
|Stock||Price (RM)||Target (RM)||Rating|
Source : OSK Research