Monday, August 22, 2011

UMW falls on lower 2Q earnings

KUALA LUMPUR: UMW HOLDINGS BHD [] shares declined in early trade on Monday, Aug 22 after its 2Q earnings fell 38% to RM131.18 million from RM211.69 million a year ago, due mainly to lower contributions from its automotive and manufacturing & engineering segments.

At 9.25am, UMW fell 24 sen to RM6.98 with 3,400 shares done.

Revenue dipped 3.6% to RM3.16 billion from RM3.28 billion. Earnings per share were 11.26 sen while net asset per share was RM3.66.

MIDF Research in a note Aug 22 said it made no changes to its earnings forecast as it had factored in the concerns on issues related to automotive and O&G divisions.

'We reiterate our NEUTRAL recommendation and maintain our target price at RM7.00 using SOP valuation with FY11 PER of 10x for the auto division, 15x PER for O&G, 9x PER for equipment and 8x PER for M&E,' it said.

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