Friday, May 13, 2011

MISC near RM7 level on weak 4Q performance

KUALA LUMPUR: Shares of MISC BHD [] fell to a low of RM7.04 on Friday, May 13 after it reported a weaker set of results for the fourth quarter ended March 31, 2011.

At 3.29pm, MISC was down 15 sen to RM7.07 with 870,100 shares done.

The FBM KLCI rose 12.32 points to 1,544.61. Turnover was 828.81 million shares done valued at RM1.14 billion. There were 4213 gainers, 260 losers and 299 stocks unchanged.

On Wednesday, MISC reported net loss of RM307.88 million in the fourth quarter ended March 31, 2011 after it made impairment provisions totaling RM456.65 million.

Tthe poor financial performance was a sharp contrast from the net profit of RM196.43 million a year ago when the provisions for impairments were sharply lower at RM49.58 million.

Revenue fell to RM2.924 billion compared with RM3.31 billion a year ago. Loss per share was 6.9 sen compared with earnings per share of 5.10 sen.

Maybank Investment Bank Research said the core FY11 results were within its expectations as 4Q performance was negatively impacted by lumpy exceptional items resulting in a loss.

'Overall, it is still too early to turn positive on MISC. Operations remain challenging in the petroleum and liner businesses and recovery is unlikely to happen in 2011. Maintain Hold with a RM8.10 target price, based on a 10% discount to SOP valuations,' it said.

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