Thursday 28 Mar 2024
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KUALA LUMPUR (Feb 14): CIMB IB Research has maintained its “Hold’ rating on Only World Group Holdings Bhd (OWG) at RM1.34 with a lower target price (TP) of RM1.35 (from RM1.90) and said OWG’s 1HFY6/18 net profit of RM4.7 million was below expectations at 14%/34% of house/ Bloomberg consensus full-year forecasts.

In a note Feb 13, the research house said the weaker-than-expected results was due to: i) lower Komtar contribution, ii) higher expenses from opening of new Genting facilities, and iii) spike in operating expenses.

“We expect stronger sequential earnings ahead in tandem with gradual contribution from its new outlets in Genting beginning-3QFY18F.

“We slash our FY18-19F EPS by 44.7-55.0% to account for: i) lower average spend per visitor in Komtar, ii) delays in GITP, and iii) higher overall operating expenses

“Maintain Hold with lower of TP of RM1.35, still based on 18x CY19F P/E,” it said.

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