Stock Name: NHFATT
Company Name: NEW HOONG FATT HOLDINGS BHD
Research House: OSK
KUALA LUMPUR: OSK Research said New Hoong Fatt's'' 1QFY11 earnings were slightly weak, accounting for 20% of its full year forecast due to seasonality given the shorter number of working days.
It said on Friday, May 6 that margins were crimped by higher raw material cost but was somewhat cushioned by the higher income contribution from the sale of steel scrap at higher prices.
'While the gradual ban of imported used parts will commence with key critical items which New Hoong Fatt (NHF) does not have exposure to, we remain positive over the longer term as eventually the ban would also include body parts.
'We maintain our earnings forecast as we expect stronger quarters ahead. Our BUY call is maintained as with our FV of RM2.85, premised on 6x FY11 EPS. No dividend was announced,' it said.
Company Name: NEW HOONG FATT HOLDINGS BHD
Research House: OSK
KUALA LUMPUR: OSK Research said New Hoong Fatt's'' 1QFY11 earnings were slightly weak, accounting for 20% of its full year forecast due to seasonality given the shorter number of working days.
It said on Friday, May 6 that margins were crimped by higher raw material cost but was somewhat cushioned by the higher income contribution from the sale of steel scrap at higher prices.
'While the gradual ban of imported used parts will commence with key critical items which New Hoong Fatt (NHF) does not have exposure to, we remain positive over the longer term as eventually the ban would also include body parts.
'We maintain our earnings forecast as we expect stronger quarters ahead. Our BUY call is maintained as with our FV of RM2.85, premised on 6x FY11 EPS. No dividend was announced,' it said.
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