Kenanga Research downgrades Hock Seng Lee, target RM1.30

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KUALA LUMPUR (Feb 12):  Kenanga IB Research has downgraded Hock Seng Lee Bhd (HSL) to “Underperform” at RM1.44 with an unchanged target price of RM1.30 after HSL secured two  contracts for a coal-fired power plant project in Mukah, Sarawak with a combined value of RM54.3 million from Sarawak Energy Berhad.

In a note today, the research house said it was neutral on the win as year-to-date replenishment is still within its FY19E target.

“No changes to earnings. Downgrade to Underperform (from Market Perform) with an unchanged target price of RM1.30 based on 10.0x FY19E PER,” it said.