KUALA LUMPUR (May 8): MIDF Research has upgraded Daibochi Plastic & Packaging Industry Bhd to Neutral with a higher target price of RM3.83 (from RM3.71) and said Daibochi’s 1QFY15 sales fell 4.7% year-on-year (y-o-y) to RM86.2 million.

In a note today, the research house said the fall in revenue was due to a slowdown in demand from export markets and the delayed product line.

It added that earnings also decreased by 6.3% y-o-y to RM6.2 million.

“The drop in earnings was attributable to the decreased turnover, sales mix and increase in depreciation and labour costs

Declared first tranche tax exempt dividend for FY15 of 3.5sen per share

“Upgrade to Neutral (negative bias) with a revised target price of RM3.83 per share,” it said.