MHB (5186) : AffinHwang Capital maintains Reduce on MMHE, slashes target price to RM2
KUALA LUMPUR (Nov 6): AffinHwang Capital Research has maintained its Reduce rating on Malaysia Marine and Heavy Enegineering Holdings Bhd (MMHE) at RM2.20 with a lower target price of RM2 (from RM3.10) and said the company’s 9M14 core pretax profit fell by 40% year-on-year to RM90 million on weaker EBIT margins from both the offshore and marine businesses.
In a note Thursday, the research house said the results were below consensus and house expectations.
“The group has merely secured RM325 million of new contracts year-to-date, likely to miss our forecast of RM2.5 billion.
“We cut our 2014-16E pretax profit forecast by 24-28%, and slash our target price to RM2.00 (from RM3.10), pegging the group at a lower target PER of 18x (from 21x). Maintain Reduce,” it said.
http://www.theedgemarkets.com
KUALA LUMPUR (Nov 6): AffinHwang Capital Research has maintained its Reduce rating on Malaysia Marine and Heavy Enegineering Holdings Bhd (MMHE) at RM2.20 with a lower target price of RM2 (from RM3.10) and said the company’s 9M14 core pretax profit fell by 40% year-on-year to RM90 million on weaker EBIT margins from both the offshore and marine businesses.
In a note Thursday, the research house said the results were below consensus and house expectations.
“The group has merely secured RM325 million of new contracts year-to-date, likely to miss our forecast of RM2.5 billion.
“We cut our 2014-16E pretax profit forecast by 24-28%, and slash our target price to RM2.00 (from RM3.10), pegging the group at a lower target PER of 18x (from 21x). Maintain Reduce,” it said.
http://www.theedgemarkets.com
