RHB raises Boilermech FV to RM2.55, ceases coverage
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RHB raises Boilermech FV to RM2.55, ceases coverage
RHB raises Boilermech FV to RM2.55, ceases coverage
Business & Markets 2014
Written by Jonathan Gan of theeedgemalaysia.com
Thursday, 20 February 2014 10:50
KUALA LUMPUR (Feb 20): RHB Research Institute Sdn Bhd has raised its fair value for Boilermech Holdings Bhd shares to RM2.55 from RM2.27.
In a note today, RHB analyst Chaw Sook Ting said the firm had however retained its “neutral” call for shares of Boilermech which manufacturers biomass boilers.
At 10:48am, Boilermech shares fell two sen or 0.7% to RM2.78 with 94,300 shares traded.
"We are ceasing coverage on Boilermech due to internal resources allocation. The company’s fundamentals remain intact, underpinned by its solid balance sheet while its orderbook is supported by strong growth in the palm plantation industry.
"We tweak our FY14 earnings forecast lower by 11% but maintain our FY15 forecast. We raise our FV to MYR2.55 (from MYR2.27), pegged to a higher target FY15F P/E of 18x. The company was still in a net cash position of MYR23.4m as at end-Jan 2014," Chaw said.
Boilermech is a 40.71% associate of QL Resources Bhd. QL is a marine-products manufacturer which also undertakes poultry farming and oil palm plantation operations.
RHB's note on Boilermech follows the announcement of the latter's financials.
Yesterday, Boilermech said net profit came to RM7.29 million in the third quarter ended December 31, 2013 (3QFY14). The firm posted a revenue of RM59.66 million.
Cumulative nine-month (9MFY14) net profit came to RM20.78 million while revenue stood at RM166.48 million. There are no comparative figures from a year earlier as Boilermech has changed its financial year end to March 31 from April 30.
Chaw said Boilermech's 9MFY14 results were below RHB's forecast, accounting for 61% of the latter's full-year estimate.
According to Chaw, Boilermech planned to supply boilers to independent power producers that supply electricity using renewable energy.
In addition, Chaw said the company was also looking to boost contribution from the service and maintenance segment over the next three years to increase its recurring income.
Business & Markets 2014
Written by Jonathan Gan of theeedgemalaysia.com
Thursday, 20 February 2014 10:50
KUALA LUMPUR (Feb 20): RHB Research Institute Sdn Bhd has raised its fair value for Boilermech Holdings Bhd shares to RM2.55 from RM2.27.
In a note today, RHB analyst Chaw Sook Ting said the firm had however retained its “neutral” call for shares of Boilermech which manufacturers biomass boilers.
At 10:48am, Boilermech shares fell two sen or 0.7% to RM2.78 with 94,300 shares traded.
"We are ceasing coverage on Boilermech due to internal resources allocation. The company’s fundamentals remain intact, underpinned by its solid balance sheet while its orderbook is supported by strong growth in the palm plantation industry.
"We tweak our FY14 earnings forecast lower by 11% but maintain our FY15 forecast. We raise our FV to MYR2.55 (from MYR2.27), pegged to a higher target FY15F P/E of 18x. The company was still in a net cash position of MYR23.4m as at end-Jan 2014," Chaw said.
Boilermech is a 40.71% associate of QL Resources Bhd. QL is a marine-products manufacturer which also undertakes poultry farming and oil palm plantation operations.
RHB's note on Boilermech follows the announcement of the latter's financials.
Yesterday, Boilermech said net profit came to RM7.29 million in the third quarter ended December 31, 2013 (3QFY14). The firm posted a revenue of RM59.66 million.
Cumulative nine-month (9MFY14) net profit came to RM20.78 million while revenue stood at RM166.48 million. There are no comparative figures from a year earlier as Boilermech has changed its financial year end to March 31 from April 30.
Chaw said Boilermech's 9MFY14 results were below RHB's forecast, accounting for 61% of the latter's full-year estimate.
According to Chaw, Boilermech planned to supply boilers to independent power producers that supply electricity using renewable energy.
In addition, Chaw said the company was also looking to boost contribution from the service and maintenance segment over the next three years to increase its recurring income.
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