KUALA LUMPUR (May 26): BIMB Securities Research has maintained its “Hold” rating at RM2.40 with a lower target price of RM2.46 and said Dayang’s 1QFY15 core net earnings of RM34.4 million was below house and consensus estimates, accounting for only 14% and 18% respectively.
In a note today, the research house said 1Q had always been a seasonally weaker quarter for Dayang due to monsoon season.
“1QFY15 recorded an increase in revenue of 7.2% year-on-year, however net earnings fell by 1.1%.
“We revised our FY15/16 earnings forecast lower by 17.8% and 14.2% respectively, hence deriving a lower target price at RM2.46 based on unchanged PER of 11x on revised FY15 EPS of 22.4 sen. Maintain Hold,” it said.