JF Apex downwards Old Town's forecast (5201)

JF Apex Securities Bhd has revised downwards its revenue forecast on
Old Town Bhd by 1.56 per cent and 4.61 per cent to RM326.2 million and
363.9 million respectively for the 2012 and 2013
financial years, citing the delay in its Ipoh factory construction as a factor.

In
its research note today, JF Apex said the delay would cause the group's
Fast Moving Consumer Goods (FMCG) division to lose a potential revenue
of RM5.1 million and RM17.6 million in the 2012 and 2013 financial
years respectively.

"However, we have upgraded the group's target price to RM2.23 from RM1.69, with a "hold" rating."

Meanwhile,
in a separate research note, OSK Research Sdn Bhd said it remained
positive of Old Town's prospects, driven by its kiosk outlets and
growing overseas business.

"The company intends to launch its
first kiosk this month or next month in the high-traffic malls of Suria
KLCC and MidValley Megamall.

"This can potentially fuel the
company's earnings as the payback period is estimated to be as fast as
12-18 months," the research house said.

OSK Research also
expects Old Town's third quarter earnings to be subdued since the
period coincided with the Ramadhan month, with earnings expected to
amount to between RM8 million and RM9 million.

The research house maintained its "buy" call on the group, with an unchanged fair value of RM2.31. Bernama

yeah~ should downgrade` i dun like i dun like~~