Stock Name: MHB
Company Name: MALAYSIA MARINE AND HEAVY ENG
Tactical downgrade to Hold. The delay in projects roll-out, a likely setback at Sime Darby's yard, grey visibility at Turkmenistan and higher tax rates are the 4 key reasons that compel us to cut 2011-13 earnings forecasts by 9-29%. The slower execution will constrain available yard space and could see MMHE missing out some projects in 2012. Against this backdrop, we cut our TP to RM5.70 (20x 2013 PER; -29%). We also downgrade our call on the stock due to fair valuations at this juncture although we remain positive over its longer term prospects.
Maybank research (7 December 2011)
Click here for full report
Company Name: MALAYSIA MARINE AND HEAVY ENG
| Research House: MAYBANK | Price Call: HOLD | Target Price: 5.70 |
Tactical downgrade to Hold. The delay in projects roll-out, a likely setback at Sime Darby's yard, grey visibility at Turkmenistan and higher tax rates are the 4 key reasons that compel us to cut 2011-13 earnings forecasts by 9-29%. The slower execution will constrain available yard space and could see MMHE missing out some projects in 2012. Against this backdrop, we cut our TP to RM5.70 (20x 2013 PER; -29%). We also downgrade our call on the stock due to fair valuations at this juncture although we remain positive over its longer term prospects.
Maybank research (7 December 2011)
Click here for full report
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