GAB shares rise on improved results

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KUALA LUMPUR: Guinness Anchor Bhd's (GAB) shares rose 3.77% this morning, after the group posted a strong set of financial results for the second quarter ended Dec 31, 2014.

At 11.28 am, GAB shares were 46 sen higher at RM12.66, with 262,200 shares done. The counter was among the top gainers across the bourse.

Affin Hwang Research said GAB's 1HFY15 results had exceeded its expectations and anticipated the third quarter to continue to be strong due to the upcoming Chinese New Year festivities and a potential pre-goods and services tax (GST) inventory stock-up.

"[However], we remain cautious on the impact of the GST for its 4Q sales volume, which we believe could potentially be slower," it said in a note this morning.

The research house maintained its "hold" call on the stock, with a revised target price of RM12.70, from RM12.51 previously.

For the six months ended Dec 31, GAB posted a 13% increase in net profit to RM130.7 million, from RM115.7 million. Revenue also rose to RM913.9 million from RM825.2 million.

KUALA LUMPUR: Guinness Anchor Bhd's (GAB) shares rose 3.77% this morning, after the group posted a strong set of financial results for the second quarter ended Dec 31, 2014.

At 11.28 am, GAB shares were 46 sen higher at RM12.66, with 262,200 shares done. The counter was among the top gainers across the bourse.

Affin Hwang Research said GAB's 1HFY15 results had exceeded its expectations and anticipated the third quarter to continue to be strong due to the upcoming Chinese New Year festivities and a potential pre-goods and services tax (GST) inventory stock-up.

"[However], we remain cautious on the impact of the GST for its 4Q sales volume, which we believe could potentially be slower," it said in a note this morning.

The research house maintained its "hold" call on the stock, with a revised target price of RM12.70, from RM12.51 previously.

For the six months ended Dec 31, GAB posted a 13% increase in net profit to RM130.7 million, from RM115.7 million. Revenue also rose to RM913.9 million from RM825.2 million.