Monday, February 28, 2011

Proton skids on losses, KLCI down 10 points

KUALA LUMPUR: Shares of PROTON HOLDINGS BHD [] skidded in early trade on Monday, Feb 28 after it posted losses.

At 9.46am, Proton was down 16 sen to RM3.93 with 18,200 shares done.

The FBM KLCI lost 10.28 points to 1,478.99. Turnover was 235.64 million shares done valued at RM239.31 million. Declining stocks picked up pace, beating advancers 414 to 105 while 178 counters were unchanged.

OSK Research said Proton's loss was a surprise, on the back of higher spending incurred for the turnaround of Lotus as well as the lower volume sold on the domestic side.

'We trim our earnings projections by 32% and 33% respectively for FY11 'FY12 and arrive at a lower TP of RM4.23 (from RM6.22), premised on 8x FY12 EPS.

'We highlight the risk of further expenditure incurred on account of Lotus amid concerns that the turnaround may take longer than expected. Downgrade to NEUTRAL from BUY,' it said.

No comments:

Post a Comment