Wednesday, September 28, 2011

MISC dips on challenging outlook

KUALA LUMPUR: MISC BHD [] shares fell in early trade on Wednesday, Sept 28 given the challenging outlook for the shipping industry going forward, including in the next financial year.

At 9.25am, MISC fell six sen to RM5.74 with 72,100 shares traded.

MIDF Research maintained its Neutral rating on the stock and said the company was already going through a tumultuous period as its 1Q11 earnings registered a decline of 59.3% year-on-year to RM187.8 million on its net profit due to losses in Petroleum and higher losses in Integrated Liner Logistics.

'Hence, we are revising downwards our FY12 earnings forecast by -31.7%, which lowers our target price to RM5.50 (from RM7.40), based on Sum-of-Parts,' the research house said on Sept 28.


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