Friday 29 Mar 2024
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KUALA LUMPUR (Jan 24): At a glance, investors appear to be warming up to FGV Holdings Bhd after the plantation group named Datuk Haris Fadzilah Hassan as group chief executive officer to spearhead the company's transformation.

FGV shares rose as much as four sen or 3.96% to RM1.05 so far today to become one of the most heavily-traded stocks across Bursa Malaysia. At 12:05pm, the counter was traded at RM1.02 with some 34 million shares changing hands.

TA Securities Holdings Bhd analyst Angeline Chin wrote in a note today: "Although we are impressed by the group's 'The Transformation Plan' to improve productivity and the financial performance, we believe the plan will confront a lot of obstacles and challenges, not only from operations but at the management level as well."

Chin said TA Securities downgraded its FGV share recommendation to sell from buy with an unchanged target price of RM1.01 based on 30% discount to FGV's 2019 price-to-book value ratio. She said TA Securities believes FGV shares have fully priced in all the positive news.

"We believe the discount is justifiable as the group is currently in a transition phase with no clear earnings visibility. We will revisit our recommendation if we see any earnings re-rating catalysts in the near future," she said.

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