Disappoint yet again, hit by cost issues Shariah-compliant
Maintain Sell. The RM116m net loss in 3Q11, which was due to operating impairments and provisions totaling RM150m, wiped out 1H's net profit of RM30m and validates our concerns on cost management. We now expect 2011 to be in the red, on expectation that losses should extend into 4Q. We also cut 2012-13 net profit forecasts by 33-54% on lower EBIT margin assumptions. Following this, we downgrade target price to RM1.08 (-9%) based on a lower PER multiple of 8x as we roll over our valuations to 2013 (previously 10x 2012 earnings).
Maybank research (23 November 2011)
Click here for full report ''
No comments:
Post a Comment