BIMB Securities upgrades Hua Yang to Buy, raises target price

BIMB Securities upgrades Hua Yang to Buy, raises target price
Business & Markets 2013
Written by theedgemalaysia.com
Thursday, 18 July 2013 09:18

KUALA LUMPUR (July 18): BIMB Securities Research has upgraded HUA YANG BHD [] to a Buy at RM2.38 with a higher target price of RM2.69 (from RM2.31) and the company’s 1QFY14 net earnings of RM12.3 million were below the research house’s full year forecast and that of the consensus.

In a note Thursday, the research house said Hua Yang’s 1Q net earnings fell by 25% year-on-year and 28% quarter-on-quarter respectively.

Overall EBIT was also down to 20% from 22% last year, it said, adding that this did not come as a surprise as the company had held back launches due to GE13 and slower CONSTRUCTION [] progress.

“Hence, we expect a stronger quarters ahead in view of more new launches in 2HCY13. It has also announced a 1-for-3 bonus issue, increasing its share base to 264m shares.

“We maintain our FY14/15 forecasts but adjusted its TP to RM2.69 from RM2.31 after adjusting for the bonus issue and market value for One South. As such, we upgrade to Buy,” it said.