UMWOG (5243) : HLIB Research maintains Hold on UMWOG, lowers target price to RM2.90
KUALA LUMPUR (Nov 25): Hong Leong IB Research (HLIB) has maintained its Hold rating on UMW Oil & Gas Corporation Bhd (UMWOG) with a lower target orice of RM2.90 (from RM.3.29) and said despite full contribution from Naga 5, higher than expected tax rate and lower margin from oilfield services have resulted in the shortfall against house expectations.
In a note Tuesday, the research house said UMWOG’s FY14 and FY15 earnings forecast was reduced by 12% and 14% respectively after factoring in higher tax rate and readjust downward average charter rate from US$147,000 per day to US$142,000 per day in FY15 to reflect pressure from declining oil price.
“We maintain our Hold call and target price reduced from of RM3.29 to RM2.90 based on unchanged 16x FY15 earnings, post earnings adjustment,” it said.
http://www.theedgemarkets.com
KUALA LUMPUR (Nov 25): Hong Leong IB Research (HLIB) has maintained its Hold rating on UMW Oil & Gas Corporation Bhd (UMWOG) with a lower target orice of RM2.90 (from RM.3.29) and said despite full contribution from Naga 5, higher than expected tax rate and lower margin from oilfield services have resulted in the shortfall against house expectations.
In a note Tuesday, the research house said UMWOG’s FY14 and FY15 earnings forecast was reduced by 12% and 14% respectively after factoring in higher tax rate and readjust downward average charter rate from US$147,000 per day to US$142,000 per day in FY15 to reflect pressure from declining oil price.
“We maintain our Hold call and target price reduced from of RM3.29 to RM2.90 based on unchanged 16x FY15 earnings, post earnings adjustment,” it said.
http://www.theedgemarkets.com
