KUALA LUMPUR (Feb 27): DRB-Hicom Bhd fell as much as 7% after the diversfied group said net profit dropped significanty to RM9.47 million in the third quarter ended December 31, 2014 (3QFY15) from RM147.66 million a year earlier.
DRB-Hicom (fundamental: 1.25; valuation: 1.8) fell as much as 15 sen to RM1.90 before paring losses at RM1.94 at 11am with 869,600 shares traded. At 11:54am, the stock remained at RM1.94 with some 1.2 million shares done.
While analysts maintained their forecast for DRB-Hicom for now, they are also mindful of the less-optimistic outlook for the group which, owns national car manufacturer Proton Holdings Bhd.
AmResearch Sdn Bhd analyst Thomas Soon said in a note today the research firm was maintaining its "buy" call on DRB-Hicom shares with an unchanged fair value of RM3.60.
"We maintain our numbers for now, pending a review with a downside bias to our forecasts," Soon said.
Yesterday, DRB-Hicom said its 3QFY15 net profit came on higher revenue of RM3.53 billion. Cumulative 9MFY15 net profit fell to RM210.4 million as revenue rose to RM10.48 billion.
Soon said DRB-Hicom's core 9MFY15 earnings came to RM144 million, accounting for only 36% and 46% of AmResearch's and consensus estimates respectively..
DRB-Hicom's diversified businesses include financial services, property and construction.
(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.)