KUALA LUMPUR: Shares of KNM GROUP BHD [] fell in early trade on Friday, May 27 after its first quarter earnings came in below expectations.
At 9.07am, it was down 20 sen to RM2.33 with 1.90 million shares done.
The FBM KLCI rose 6.13 points to 1,547.07. Turnover was 31.24 million shares valued at RM31.13 million. There were 99 gainers, 72 losers and 99 stocks unchanged.
ECM Libra Research said KNM's 1QFY11 net profit came in significantly below house and consensus expectations. Profit of RM19.4m made up less than 10% of full year estimates.
'The reason for the poor showing is that the group is still going through their older orders, which were low margin orders secured over FY10 (excluding the turnkey projects). Management had earlier guided on softer results in 1H11 hence this comes as no surprise.
'On a positive note, revenue growth indicates increasing utilisation which we gauge should be at roughly 70% from 60% in FY10,' it said.
At 9.07am, it was down 20 sen to RM2.33 with 1.90 million shares done.
The FBM KLCI rose 6.13 points to 1,547.07. Turnover was 31.24 million shares valued at RM31.13 million. There were 99 gainers, 72 losers and 99 stocks unchanged.
ECM Libra Research said KNM's 1QFY11 net profit came in significantly below house and consensus expectations. Profit of RM19.4m made up less than 10% of full year estimates.
'The reason for the poor showing is that the group is still going through their older orders, which were low margin orders secured over FY10 (excluding the turnkey projects). Management had earlier guided on softer results in 1H11 hence this comes as no surprise.
'On a positive note, revenue growth indicates increasing utilisation which we gauge should be at roughly 70% from 60% in FY10,' it said.
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