KUALA LUMPUR (Nov 19): Affin Hwang Capital Research has maintained its “hold” rating on APM Automotive Holdings Bhd at RM3.20 with a lower target price of RM2.90 (from RM3.70) and said APM’s 9M18 core net profit fell by 14% year-on-year to RM23.9 million, below market and house expectations (55% and 65% of respective full year forecasts).

In a note today, the research house said the earnings disappointment was due to losses from overseas operations and weaker-than-expected profit from the suspension segment, affected by higher raw steel prices.

“We cut our FY18-20E core EPS forecasts by 15-27% to reflect higher material costs/lower profit margin assumptions.

“We reiterate our Hold rating on APM with a lower price target of RM2.90,” it said.