KUALA LUMPUR (Feb 14): CIMB IB Research has maintained its “Hold’ rating on MISC Bhd at RM7.08 with a lower target price of RM6.87 (from RM7.41) and said MISC’s FY17 core net profit was 3% below house forecast and consensus, due to a US$22 million impairment on trade receivables of its Yemen LNG contract in 4Q17.

In a note Feb 13, the research said it expects FY18F core EPS to be slightly lower than FY17, as higher LNG and AET profits may be offset by lower construction profits from the FSO Benchamas 2.

“Our SOP-based target price has been lowered mainly on account of the stronger ringgit; we now assume RM4:US$1 by end-FY18F, from RM4.30 previously.

“We maintain Hold as there are few catalysts for the stock,” it said.