KUALA LUMPUR: KNM GROUP BHD [] came under selling pressure in late afternoon on Friday, May 27, with the shares falling to a low of RM2.15, the lowest since Dec 13, 2010.
At 3.38pm, it was down 38 sen to RM2.15 with 73.09 million shares done.
The FBM KLCI rose 6.33 points to 1,547.27. Turnover was 635.06 million shares done valued at RM1.09 billion. The broader market displayed signs of weakening further, with 467 losers to 251 gainers and 299 stocks unchanged.
RHB Research Institute said KNM 1Q earnings were significantly below expectations due to legacy contracts.
'We have downgraded our call on the stock to Underperform based on 12x target PER (down from 15x) on revised FY12 EPS of 19 sen,' it said.
In the 1Q, its earnings fell to RM19.01 million from RM40.33 million a year ago.
OSK Research said KNM's 1QFY11 results were below consensus and its expectations, making up 8% and 9% of the FY11 forecasts respectively.
'Overall, although there was improvement in its overall business activities, these remained slow, resulting in the company making a minimal PBT of only RM6.3 million, which was quite close to the RM6.9 million generated in 4QFY10. Also, its performance this quarter was boosted by the utilisation of tax incentives from Borsig's acquisition amounting to RM12.8 million (4QFY10 of RM14.0 million),' it said.
At 3.38pm, it was down 38 sen to RM2.15 with 73.09 million shares done.
The FBM KLCI rose 6.33 points to 1,547.27. Turnover was 635.06 million shares done valued at RM1.09 billion. The broader market displayed signs of weakening further, with 467 losers to 251 gainers and 299 stocks unchanged.
RHB Research Institute said KNM 1Q earnings were significantly below expectations due to legacy contracts.
'We have downgraded our call on the stock to Underperform based on 12x target PER (down from 15x) on revised FY12 EPS of 19 sen,' it said.
In the 1Q, its earnings fell to RM19.01 million from RM40.33 million a year ago.
OSK Research said KNM's 1QFY11 results were below consensus and its expectations, making up 8% and 9% of the FY11 forecasts respectively.
'Overall, although there was improvement in its overall business activities, these remained slow, resulting in the company making a minimal PBT of only RM6.3 million, which was quite close to the RM6.9 million generated in 4QFY10. Also, its performance this quarter was boosted by the utilisation of tax incentives from Borsig's acquisition amounting to RM12.8 million (4QFY10 of RM14.0 million),' it said.
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