MHB (5186) - AllianceDBS Research cuts MMHE target to 90 sen
KUALA LUMPUR (Feb 23): AllianceDBS Research has maintained its “Fully Valued” rating on Malaysia Marine & Heavy Engineering Holdings Bhd (MMHE) at RM1.47 and cut its target price to 90 sen (from RM1.45) and said it expects the company to secure only RM1.7 billion worth of new orders in FY15-16 (revised down from RM3 billion).
In a note Monday, the research house said that at the recent analyst briefing, MMHE said that despite a RM3 billion tenderbook, tenders had been slow and there was a risk some may be cancelled or re-negotiated.
“On this note, we cut our orderbook replenishment target to RM1.7 billion for FY15-16, compared to our previous estimate of RM2 billion in FY15 and RM1 billion in FY16,” it said.
“We reduced target price to 90 sen from RM1.45 previously, following the earnings downgrade. We prefer companies with stronger earnings visibility, such as SapuraKencana Petroleum Bhd (TP RM3.25, Buy) and Bumi Armada Bhd (TP RM1.70, Buy),” it said.
http://www.theedgemarkets.com/my/node/185714
KUALA LUMPUR (Feb 23): AllianceDBS Research has maintained its “Fully Valued” rating on Malaysia Marine & Heavy Engineering Holdings Bhd (MMHE) at RM1.47 and cut its target price to 90 sen (from RM1.45) and said it expects the company to secure only RM1.7 billion worth of new orders in FY15-16 (revised down from RM3 billion).
In a note Monday, the research house said that at the recent analyst briefing, MMHE said that despite a RM3 billion tenderbook, tenders had been slow and there was a risk some may be cancelled or re-negotiated.
“On this note, we cut our orderbook replenishment target to RM1.7 billion for FY15-16, compared to our previous estimate of RM2 billion in FY15 and RM1 billion in FY16,” it said.
“We reduced target price to 90 sen from RM1.45 previously, following the earnings downgrade. We prefer companies with stronger earnings visibility, such as SapuraKencana Petroleum Bhd (TP RM3.25, Buy) and Bumi Armada Bhd (TP RM1.70, Buy),” it said.
http://www.theedgemarkets.com/my/node/185714
