Bursa Alert
Global Market
NewsCIMB downgrades Gas Malaysia after higher depreciation, taxes lowers profit
Page 1 of 1
CIMB downgrades Gas Malaysia after higher depreciation, taxes lowers profit
by Cals Fri 16 May 2014, 17:31
| CIMB downgrades Gas Malaysia after higher depreciation, taxes lowers profit |
| Business & Markets 2014 |
| Written by Jonathan Gan of theedgemalaysia.com |
| Friday, 16 May 2014 10:21 KUALA LUMPUR (May 16): CIMB Investment Bank Bhd has downgraded its profit forecast for Gas Malaysia Bhd and the stock's target price (TP). The downgrades came after Gas Malaysia's first quarter core net profit of RM41.6 million came in below CIMB's expectation. Higher depreciation expenses and tax rates were behind Gas Malaysia’s lower profit, according to CIMB analyst Faisal Syed Ahmad. In a note, Faisal said : “After adjusting for the higher depreciation and tax, our FY14-16 earnings estimates are reduced by 1-3.6%. Our TP is also subsequently lower at RM3.96 based on 24 times FY15 price/earnings from RM4.10 previously." At 9:56 am, Gas Malaysia shares rose one sen or 0.3% to RM3.61. Despite the TP cut, Faisal expects stronger quarters ahead for Gas Malaysia as volume continues to grow. “Gas Malaysia’s selling price is likely to continue to be revised upwards as the domestic gas volume it consumes will continue to be reduced by Petronas... We expect the next revision to come around Nov/Dec this year,” said Faisal. |
Cals- Administrator
- Posts : 25277 Credits : 57721 Reputation : 1766
Join date : 2011-09-08
Location : global
Comments : “My plan of trading was sound enough and won oftener that it lost. If I had stuck to it Iâ€
d have been right perhaps as often as seven out of ten times.â€
Stock Exposure : Technical Analysis / Fundamental Analysis / Mental Analysis
Similar topics» Astro 1Q profit falls 6.7% on 'higher depreciation'
» Highlight Genting 2Q net profit dips 13% on higher depreciation...
» Tan Chong 3Q profit falls 3% on higher taxes
» CIMB lowers Malaysia's 2013 GDP growth to 5.1%
» Power Root 3Q net profit rises 2% on higher revenue, lower taxes
» Highlight Genting 2Q net profit dips 13% on higher depreciation...
» Tan Chong 3Q profit falls 3% on higher taxes
» CIMB lowers Malaysia's 2013 GDP growth to 5.1%
» Power Root 3Q net profit rises 2% on higher revenue, lower taxes
Page 1 of 1
Permissions in this forum:
You cannot reply to topics in this forum