Stock Name: MISC
Company Name: MISC BHD
Stock Name: MISC
Company Name: MISC BHD
Research houses do not expect MISC to stage a strong performance for its second half financial year due to the bleak outlook on the global economic front and the Euro debt crisis.
OSK Research said MISC's liner losses were expected to widen as demand from China eases on monetary tightening.
"Of late, demand has also shifted from sea to air, an indication that most container shipping companies have just missed the Christmas shipping season owing to the earlier global supply chain disruption following Japan's earthquake," OSK said.
OSK said MISC's first quarter earnings was below its estimates, representing 16 per cent and 15 per cent of the research house's and consensus full year forecasts respectively, although revenue was in line.
According to OSK, MISC's lower revenue and earnings were due to weaker contribution from its heavy engineering and continued losses from both its petroleum and liner divisions.
"Our net profit estimates are cut by 17.5 per cent and 12.6 per cent for financial year 2011 and financial year 2012," OSK said.
It also downgraded MISC to "sell" with its fair value revised down to RM6.93 from RM7.44.
Meanwhile, Kenanga Research said the earnings outlook of MISC's financial year 2011 remained unexciting in anticipation of flat earnings from the group's LNG Shipping. On the other hand, the group's Petroleum and Chemical Shipping is expected to face low charter rates and oversupply of vessel.
However, Kenanga said the earnings from its heavy engineering was likely to be sustainable as the RM952 million marine conversion contracts awarded in May 2011 would take them to complete in the second quarter of calendar year 2013.
Due to the disappointing first quarter results for financial year 2011, Kenanga has trimmed its financial year 2011 and financial year 2012 earnings per share estimates by 43 per cent and 22 per cent respectively on assumptions of a 20-30 per cent reduction in charter rates for Petroleum and Chemical Shipping.
"Post earnings revision, our new price target is now RM6.72. Hence we downgrade MISC to `underperform'," Kenanga added.--Bernama
DAB SD
Company Name: MISC BHD
| Research House: KENANGA | Price Call: SELL | Target Price: 6.72 |
Stock Name: MISC
Company Name: MISC BHD
| Research House: OSK | Price Call: SELL | Target Price: 6.93 |
Research houses do not expect MISC to stage a strong performance for its second half financial year due to the bleak outlook on the global economic front and the Euro debt crisis.
OSK Research said MISC's liner losses were expected to widen as demand from China eases on monetary tightening.
"Of late, demand has also shifted from sea to air, an indication that most container shipping companies have just missed the Christmas shipping season owing to the earlier global supply chain disruption following Japan's earthquake," OSK said.
OSK said MISC's first quarter earnings was below its estimates, representing 16 per cent and 15 per cent of the research house's and consensus full year forecasts respectively, although revenue was in line.
According to OSK, MISC's lower revenue and earnings were due to weaker contribution from its heavy engineering and continued losses from both its petroleum and liner divisions.
"Our net profit estimates are cut by 17.5 per cent and 12.6 per cent for financial year 2011 and financial year 2012," OSK said.
It also downgraded MISC to "sell" with its fair value revised down to RM6.93 from RM7.44.
Meanwhile, Kenanga Research said the earnings outlook of MISC's financial year 2011 remained unexciting in anticipation of flat earnings from the group's LNG Shipping. On the other hand, the group's Petroleum and Chemical Shipping is expected to face low charter rates and oversupply of vessel.
However, Kenanga said the earnings from its heavy engineering was likely to be sustainable as the RM952 million marine conversion contracts awarded in May 2011 would take them to complete in the second quarter of calendar year 2013.
Due to the disappointing first quarter results for financial year 2011, Kenanga has trimmed its financial year 2011 and financial year 2012 earnings per share estimates by 43 per cent and 22 per cent respectively on assumptions of a 20-30 per cent reduction in charter rates for Petroleum and Chemical Shipping.
"Post earnings revision, our new price target is now RM6.72. Hence we downgrade MISC to `underperform'," Kenanga added.--Bernama
DAB SD
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