Wednesday, November 16, 2011

OSK Research discontinues coverage of Jobstreet

KUALA LUMPUR (Nov 16): OSK Research has discontinued coverage of Jobstreet due to the lack of share price catalysts and its in-house resource reallocation, including a review of the current market dynamics.

It said on Wednesday that Jobstreet's 9MFY11 core earnings stood at RM36.2 million, coming in within its and consensus estimates at 74.3% and 76.4% of the full-year forecasts respectively.

'3QFY11 net profit came in at RM11.6 million, up 19.8% y-o-y on improved employers sentiment but was down 13.4% q-o-q on seasonal weakness,' it said.

OSK Research said a third interim DPS of 1.8 sen was declared, bringing the YTD payout to 4.8 sen.

'Given the lack of share price catalysts and our in-house resource reallocation, including a review of the current market dynamics, we are discontinuing coverage on the stock. Our call is now changed to NON-RATED, while our previous Fair Value was RM2.10,' it said.

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