Stock Upgrade: Koda's fair value raised to 0.705 sgd by OCBC

OCBC Securities said it has raised its fair value for furniture maker Koda to 0.705 sgd per share from 0.52 sgd as it expects the company to post stronger earnings for the year to June 2007. OCBC said it has raised its estimate of net profit for Koda for the year to June 2007 to 9.80 mln sgd from 8.70 mln sgd to factor-in potential contributions from new furniture orders so far this year. Koda recently announced that it had secured 8.50 mln sgd-worth of new orders in the three months to March, bringing the value of its order book at the end of March to 31.50 mln sgd. "In view of its surging order book, improving margins and proximity to its financial year ended June, we now have a fair value estimate of 0.705 sgd (versus 0.52 sgd previously) for Koda. This is based on an undemanding eight times year-to-June-2007 earnings," OCBC said. t 11.24 am, Koda was up 0.01 sgd or 2.04 pct at 0.50, with 134,000 shares traded.