Company Name: CENTURY LOGISTICS HOLDINGS BHD
|Research House: RHB||Price Call: SELL||Target Price: 1.63|
RHB Research lowered its call on Malaysia's Century Logistics Holdings Bhd to "underperform" from "outperform" after the logistics services company announced weaker than expected 1Q12 earnings.
In a research note on Friday, RHB said Century's first quarter net profit of RM4.3 million (US$1.40 million) came in below expectations, accounting for 13.8 percent of consensus full-year estimates.
"We believe earnings risks have risen and we downgrade the stock to underperform (from outperform)," RHB said.
RHB said the weaker earnings were partly due to start-up losses and lower-than-expected contribution from the ship-to-ship (STS) segment.
"The ongoing strike by container haulage drivers had indirectly hampered its total logistics segment," RHB added. RHB cut its fair value estimates to 1.63 ringgit per share from 2.09 ringgit. -- Reuters