KUALA LUMPUR: OSK Research is maintaining its Neutral call on KFC Holdings Bhd with an unchanged target price of RM8.30.

It said on Tuesday, March 9 that KFCH’s newest chicken processing plant in Bandar Tenggara has the capacity to process 40,000 tonnes of chicken per day.

“We see continuing improvement from its integrated poultry segment with new facilities such as the coning system, which enhances productivity as well as the tenderness of chicken meat,” it added.

OSK Research also noted the innovations at KFCH’s operations as well as its plans to replicate this innovation across its other plants.

“As we remain confident on its operations, we are maintaining our earnings forecasts for FY10 and FY11. Our target price remains unchanged at RM8.30, based on 11.5 times PER over FY10 EPS. Maintain Neutral,” it said.