KUALA LUMPUR (Feb 27): BIMB Securities Research has downgraded Wah Seong Corporation Bhd to Sell at RM1.37 with a lower target price of RM1.18 (from RM1.38) and said Wah Seong’s FY14 net earnings of RM125.6 million were above house and consensus estimates, making up 112% and 110% of both earnings forecast.
In a note Friday, the research house said full year revenue and earnings increased 37% and 288% respectively.
“We adjusted our FY15 and FY16 estimates downwards by 14% and 15% respectively mainly due to margin compression and subdue order book replenishment.
“Hence, our lower target price at RM1.18. Downgrade to Sell,” it said.