Stock Name: EVERGRN
Company Name: EVERGREEN FIBREBOARD BHD
Research House: HWANGDBS
Company Name: EVERGREEN FIBREBOARD BHD
Research House: HWANGDBS
OSK Research has downgraded Evergreen Fibreboard (EVF) to "neutral" following profits that has dissapointed estimates
due to higher-than-expected rubber log prices and weakening US Dollar.
"Revenue came in line with our expectations, declining marginally by 2.2 per cent, on slightly weaker volume sales.
"However, with a drastic rise in rubber log prices and weakening US Dollar, bottom line profits came below our and consensus expectations, accounting for only 5.8 per cent and 6.7 per cent of our and consensus full year forecast," OSK Research said in a statement today.
Meanwhile, HwangDBS Vickers Research has also cut the group's earnings for fiscal year 2011 to 2013 between 19 per cent and 27 per cent on higher wood cost assumptions.
It said EVF's operations remained severely disrupted by floods in Johor and Thailand, coupled with slow orders during Chinese New Year holidays and major maintenance works on most of its plants.
"Fiscal year 2011 will be a challenging year for EVF given that demand is unlikely to be strong enough to offset the impact of a weaker US Dollar and raw material costs," it said.
It maintained its "hold" stance for EVF with a reduced target price of RM1.15, from RM1.55, previously. -- Bernama
due to higher-than-expected rubber log prices and weakening US Dollar.
"Revenue came in line with our expectations, declining marginally by 2.2 per cent, on slightly weaker volume sales.
"However, with a drastic rise in rubber log prices and weakening US Dollar, bottom line profits came below our and consensus expectations, accounting for only 5.8 per cent and 6.7 per cent of our and consensus full year forecast," OSK Research said in a statement today.
Meanwhile, HwangDBS Vickers Research has also cut the group's earnings for fiscal year 2011 to 2013 between 19 per cent and 27 per cent on higher wood cost assumptions.
It said EVF's operations remained severely disrupted by floods in Johor and Thailand, coupled with slow orders during Chinese New Year holidays and major maintenance works on most of its plants.
"Fiscal year 2011 will be a challenging year for EVF given that demand is unlikely to be strong enough to offset the impact of a weaker US Dollar and raw material costs," it said.
It maintained its "hold" stance for EVF with a reduced target price of RM1.15, from RM1.55, previously. -- Bernama
No comments:
Post a Comment