KUALA LUMPUR (Nov 21): Hong Long IB Research has maintained its “hold” rating on MISC Bhd at RM6.60 with a higher target price of RM6.40 (from RM6.17) and said MISC’s 9M18 results with core profit of RM938 million (-38% y-o-y) is deemed within expectations.
In a note today, the research house said it expects stronger 4Q18 led by higher charter rates, lower dry docking activities and stronger US dollar.
“While LNG segment is expected to stay resilient on firm long-term charters, we expect petroleum segment to improve seasonally in 4Q18 on higher winter demand.
“We increase FY18/19/20 earnings forecast by 2%/4%/4% on higher petroleum tanker rate assumption. Maintain our 'hold' rating with higher SOP-driven target price of RM6.40,” it said.