Friday 29 Mar 2024
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KUALA LUMPUR (Dec 9): MIDF Research has maintained its “Neutral” rating on UMW Holdings Bhd with a lower target price of RM12 (from RM12.20) and said UMW’s management was positive on FY15 as restructuring efforts of legacy businesses was expected to result in narrower losses while outlook of its Heavy Equipment division is improving.

In a note Tuesday, the research house said contribution from the Auto division in FY15 is expected to be stronger with new model launches while Perodua’s earnings are expected to rebound.

“We cut FY15 earnings on higher RM/USD rate assumed as it is net negative to the group although O&G unit benefits.

“We maintain Neutral on UMW with a lower target price of RM12 due to limited catalyst for the stock but yields are decent,” it said.

At 9.45am, UMW rose 0.93% or 10 sen ro RM10.82 with 15,500 shares traded.

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