KUALA LUMPUR (Feb 12): Hock Seng Lee Bhd (HSL) shares fell 2.78% this morning after Kenanga IB Research downgraded the stock to “Underperform” at RM1.44 with an unchanged target price of RM1.30 after HSL secured two contracts for a coal-fired power plant project in Mukah, Sarawak with a combined value of RM54.3 million from Sarawak Energy Berhad.
At 9.31am, HSL fell 4 sen to RM1.40 with 36,900 shares traded.
In a note today, the research house said it was neutral on the win as year-to-date replenishment is still within its FY19E target.
“No changes to earnings. Downgrade to Underperform (from Market Perform) with an unchanged target price of RM1.30 based on 10.0x FY19E PER,” it said.