Stock Name: MHB
Company Name: MALAYSIA MARINE AND HEAVY ENG
MIDF Research cut its rating on Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) to "hold" from "buy" after the firm announced disappointing second-quarter earnings.
MMHE's earnings declined 28 percent quarter-on-quarter and 29 percent year-on-year, while its first-half earnings accounted for only 38.7 percent of the market's full-year earnings forecasts.
"We believe that at this point in time, MMHE's market price has run ahead of its valuation," MIDF said in a research note on Friday.
The research house cut its earnings forecast for the financial years 2012 and 2013 by 12.8 percent and 11.4 percent, respectively, and reduced its order-book replenishment assumption to RM1.5 billion per annum.
MIDF also cut MMHE's target price to RM5.06 per share from RM5.97 previously. -- Reuters
Company Name: MALAYSIA MARINE AND HEAVY ENG
| Research House: MIDF | Price Call: HOLD | Target Price: 5.06 |
MIDF Research cut its rating on Malaysia Marine and Heavy Engineering Holdings Bhd (MMHE) to "hold" from "buy" after the firm announced disappointing second-quarter earnings.
MMHE's earnings declined 28 percent quarter-on-quarter and 29 percent year-on-year, while its first-half earnings accounted for only 38.7 percent of the market's full-year earnings forecasts.
"We believe that at this point in time, MMHE's market price has run ahead of its valuation," MIDF said in a research note on Friday.
The research house cut its earnings forecast for the financial years 2012 and 2013 by 12.8 percent and 11.4 percent, respectively, and reduced its order-book replenishment assumption to RM1.5 billion per annum.
MIDF also cut MMHE's target price to RM5.06 per share from RM5.97 previously. -- Reuters
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