KUALA LUMPUR (Mar 5): Brahim's Holdings Bhd which has fallen 36% the past four days, continued its downward trajectory today, shedding 9 sen or 9.84%.

At 12pm today, the counter lost 7.5 sen or 8.2% to 84 sen, with some 4.5 million shares done. Earlier, the counter reached a low of 82.5 sen, after declining as much as 9 sen or 9.84%.

Since the airline caterer announced its unaudited results for the financial year ended Dec 31, 2014 (FY14) on Feb 27, the company's share price has dropped 48.5 sen or 37% from its closing of RM1.31 that day.

Brahim's (fundamental: 0.35; valuation: 1.2) reported a net loss of RM33.59 million or 14.34 sen per share in FY14, compared with a net profit of RM22.03 million in FY13, while revenue dropped 10% to RM353.57 million, from RM394.83 million.

For the fourth quarter ended Dec 31 (4Q14), the company reported net loss of RM40.32 million or 17.06 sen per share, compared to net profit of RM12.69 million in 4Q13. Quarterly revenue fell 27.5% year-on-year to RM109.12 million.

The weak results were attributed to concessions given to Malaysian Airline Systems Bhd amounting to RM56.1 million.

While the company had dipped into the red in 4Q14, Hong Leong Investment Bank Bhd said Brahim's core net profit was higher than expected at RM22.5 million, due to lower operational costs and effective tax rate.

"We are keeping our forecasts unchanged despite the above expectations results as we continue to expect operational challenges to be faced by the group from MAS Recovery Plan as well upon the implementation of MAS Act in July. We see potential average price per meal to remain pressured," said the research house.

The research house kept its "hold" call on Brahim's with a target price of RM1.43.

(Note: The Edge Research's fundamental score reflects a company's profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)