Stock Name: BERNAS
Company Name: PADIBERAS NASIONAL BHD
Inability to raise prices crimped profits. RM147.4m (+5.2% YoY) 9M11 core net income was below our expectation and makes up 65% of our full year forecast. ASP has remained largely stagnant as Bernas is unable to push higher prices due to regulatory constraints. The delay could be due to the forthcoming GE13. This may drag for another two quarters. We reduce our earnings forecasts and downgrade the stock to Hold with a new target price of RM3.40 (-13%) based on DDM.
Maybank research (25 November 2011)
Click here for full report
Company Name: PADIBERAS NASIONAL BHD
| Research House: MAYBANK | Price Call: HOLD | Target Price: 3.40 |
Inability to raise prices crimped profits. RM147.4m (+5.2% YoY) 9M11 core net income was below our expectation and makes up 65% of our full year forecast. ASP has remained largely stagnant as Bernas is unable to push higher prices due to regulatory constraints. The delay could be due to the forthcoming GE13. This may drag for another two quarters. We reduce our earnings forecasts and downgrade the stock to Hold with a new target price of RM3.40 (-13%) based on DDM.
Maybank research (25 November 2011)
Click here for full report
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