KUALA LUMPUR (April 10): TA Securities Research has maintained its “Sell” rating on Unimech Group Bhd at RM1.41 with an unchanged target price of RM1.45 and said Unimech’s share price had declined by 21% since the peak of RM1.78 in October 2014.

In a note today, the research house said the weakening of share price was due to, i) persistent margin compression as observed in the quarterly financial results and ii) uncertainty in the outlook of oil & gas and plantation sector.

“We see no immediate re-rating catalyst at this juncture and margin compression remains a major concern.

“Therefore, we reiterate our Sell recommendation for Unimech with an unchanged target price of RM1.45, based on CY16 PER of 10x,” it said.