KUALA LUMPUR (Nov 25): CIMB Equities Research said MSM Malaysia Holdings Bhd's strong export sales could not fully cover the drop in sales volume for the more profitable domestic sugar business.
In its report issued on Friday, the research house said this resulted in weaker 3Q11 earnings. However, the eight sen dividend did not disappoint.
'The 9M11 net profit was below expectations as it was only 63% of our full-year forecast and 67% of consensus earnings.
'We cut our FY11-13 earnings and target price (based on 12.6x target market P/E) after we roll it over to end-12. Maintain NEUTRAL rating,' it said.
CIMB Research reduced the target price from RM5.82 to RM5.
In its report issued on Friday, the research house said this resulted in weaker 3Q11 earnings. However, the eight sen dividend did not disappoint.
'The 9M11 net profit was below expectations as it was only 63% of our full-year forecast and 67% of consensus earnings.
'We cut our FY11-13 earnings and target price (based on 12.6x target market P/E) after we roll it over to end-12. Maintain NEUTRAL rating,' it said.
CIMB Research reduced the target price from RM5.82 to RM5.
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