Friday 29 Mar 2024
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KUALA LUMPUR (Nov 6): AffinHwang Capital Research has maintained its Reduce rating on Malaysia Marine and Heavy Enegineering Holdings Bhd (MMHE) at RM2.20 with a lower target price of RM2 (from RM3.10) and said the company’s 9M14 core pretax profit fell by 40% year-on-year to RM90 million on weaker EBIT margins from both the offshore and marine businesses.

In a note Thursday, the research house said the results were below consensus and house expectations.

“The group has merely secured RM325 million of new contracts year-to-date, likely to miss our forecast of RM2.5 billion.

“We cut our 2014-16E pretax profit forecast by 24-28%, and slash our target price to RM2.00 (from RM3.10), pegging the group at a lower target PER of 18x (from 21x). Maintain Reduce,” it said.

 

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