KUALA LUMPUR: Shares of UMW HOLDINGS BHD [] rose to a high of RM7.20 in the morning session on Thursday, May 26 after reporting a set of firmer financial results but analysts were cautious about the outlook for its oil and gas (O&G) business.
At 11.08am, it was up three sen to RM7.18. There were 626,100 shares done at prices ranging from RM7.17 to RM7.20.
OSK Research said UMW's 1Q revenue and net profit of RM3.2 billion and RM151.8 million respectively were in line with its and consensus.
'While the group saw revenue growth across all segments and a margin boost from the strengthening RM, the profitability of its O&G division continues to disappoint.
'Although production is expected to normalise by end of this month, and earlier than expected too, we are cautious of making any substantial revision in earnings owing to the potential of a power shortage during the summer in Japan slowing down production. We maintain our SELL call on UMW with our FV unchanged at RM6.41,' it said.
At 11.08am, it was up three sen to RM7.18. There were 626,100 shares done at prices ranging from RM7.17 to RM7.20.
OSK Research said UMW's 1Q revenue and net profit of RM3.2 billion and RM151.8 million respectively were in line with its and consensus.
'While the group saw revenue growth across all segments and a margin boost from the strengthening RM, the profitability of its O&G division continues to disappoint.
'Although production is expected to normalise by end of this month, and earlier than expected too, we are cautious of making any substantial revision in earnings owing to the potential of a power shortage during the summer in Japan slowing down production. We maintain our SELL call on UMW with our FV unchanged at RM6.41,' it said.
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