SUPERMX (7106) : Supermax downgraded at CIMB Research
KUALA LUMPUR: CIMB Equities Research has downgraded glove maker Supermax to Hold from Add and lowered the target price from RM2.53 to RM2.38.
It said on Monday 9MFY14’s net profit came in below its (67% of FY14 forecast) and consensus’ estimates (64%).
“Weak associate contribution, forex losses and higher costs incurred for its new and Alor Gajah factories dragged down its 3Q numbers,” it said.
CIMB Research said 9MFY14’s revenue was impacted by the weak 1H sales volume, while net profit was dragged down by weak associate contribution, forex losses and a higher effective tax rate despite lower operating expenses.
“We cut our FY14-16 EPS by 12%-18%. This lowers our target price (12.4 times P/E, 30% discount to Hartalega) which we roll over to 2016.
“We downgrade the stock to Hold from Add due to the underperformance and lack of transparency. Supermax declared an interim dividend of 2 sen a share, in line with our forecast. We prefer Kossan,” it said.
http://www.thestar.com.my
KUALA LUMPUR: CIMB Equities Research has downgraded glove maker Supermax to Hold from Add and lowered the target price from RM2.53 to RM2.38.
It said on Monday 9MFY14’s net profit came in below its (67% of FY14 forecast) and consensus’ estimates (64%).
“Weak associate contribution, forex losses and higher costs incurred for its new and Alor Gajah factories dragged down its 3Q numbers,” it said.
CIMB Research said 9MFY14’s revenue was impacted by the weak 1H sales volume, while net profit was dragged down by weak associate contribution, forex losses and a higher effective tax rate despite lower operating expenses.
“We cut our FY14-16 EPS by 12%-18%. This lowers our target price (12.4 times P/E, 30% discount to Hartalega) which we roll over to 2016.
“We downgrade the stock to Hold from Add due to the underperformance and lack of transparency. Supermax declared an interim dividend of 2 sen a share, in line with our forecast. We prefer Kossan,” it said.
http://www.thestar.com.my
