Stock Name: UMW
Company Name: UMW HOLDINGS BHD
Research House: RHB
KUALA LUMPUR: UMW HOLDINGS BHD [] shares fell on Monday, April 25 following Toyota's confirmation that the normalisation of production in Japan and overseas plants to pre-earthquake levels would only be achieved by Nov or Dec. Meantime, production at its plants have already restarted but at reduced capacities.
At 11.05am, UMW fell eight sen to RM7 with 61,000 shares traded.
RHB Research reiterated its Market Perform recommendation on UMW but lowered its fair value to RM7.50 (from RM7.85).
The research house said it was believed that the new Myvi replacement model that was expected to be launched this month has been deferred till 2H11.
A longer-than-expected disruption of component supplies will result in extended waiting period that will affect financials from 3Q11 onward that will defer the recognition of profit to 2012, it said.
'In 1Q11, Toyota and Perodua sales were disappointing. Toyota registration for the quarter of 21,310 units was flat year-on-year, while Perodua registrations of 45,661 units were 4.4% lower year-on-year.
'We continue to believe that UMW is close to being fairly valued considering that near-term price catalysts remain absent while supply-side risks remain present,' it said in a note April 25.
Company Name: UMW HOLDINGS BHD
Research House: RHB
KUALA LUMPUR: UMW HOLDINGS BHD [] shares fell on Monday, April 25 following Toyota's confirmation that the normalisation of production in Japan and overseas plants to pre-earthquake levels would only be achieved by Nov or Dec. Meantime, production at its plants have already restarted but at reduced capacities.
At 11.05am, UMW fell eight sen to RM7 with 61,000 shares traded.
RHB Research reiterated its Market Perform recommendation on UMW but lowered its fair value to RM7.50 (from RM7.85).
The research house said it was believed that the new Myvi replacement model that was expected to be launched this month has been deferred till 2H11.
A longer-than-expected disruption of component supplies will result in extended waiting period that will affect financials from 3Q11 onward that will defer the recognition of profit to 2012, it said.
'In 1Q11, Toyota and Perodua sales were disappointing. Toyota registration for the quarter of 21,310 units was flat year-on-year, while Perodua registrations of 45,661 units were 4.4% lower year-on-year.
'We continue to believe that UMW is close to being fairly valued considering that near-term price catalysts remain absent while supply-side risks remain present,' it said in a note April 25.
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