HLIB Research downgrades UMW to Sell, cuts target to RM9.44


-A +A

KUALA LUMPUR (May 27): Hong Leong IB Research has downgraded UMW Holdings Bhd to “Sell” (from Hold) with a lolwer target price of RM9.44 (from RM10.75) and said the company’s 1Q15 core earnings at RM172.6 million, which was 20% of HLIB and 19% of consensus was below expectations.

In a note today, the research house said UMW’s automotive earnings disappointed mainly due to lower Toyota sales volume and increased input cost from US$ appreciation.

“Oil &Gas earnings disappointed from lower effective charter rates (discounts given on top of contracted rates) in view of the plunge in oil price.

“Cut to Sell (from Hold) with lower target price of RM9.44 (from RM10.75) based on SOP,” it said,