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NewsCIMB Research downgrades Mudajaya to Reduce, cuts target to RM1.26
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CIMB Research downgrades Mudajaya to Reduce, cuts target to RM1.26
by Cals Tue 03 Mar 2015, 00:20
CIMB Research downgrades Mudajaya to Reduce, cuts target to RM1.26
By TheEdge Markets.com / theedgemarkets.com | March 2, 2015 : 9:39 AM MYT
KUALA LUMPUR (March 2): [size=14]CIMB Research has downgraded Mudajaya Group Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) to “Reduce” (from Hold) at RM1.63 and cut its target price to RM1.26 (from RM1.79) and said Mudajaya posted a core net loss in FY14 versus house and consensus' projected net profit forecasts.
In a note Feb 27, the research house’s Sharizan Rosely said a major provision (circa RM200 million) relating to cost overruns for a domestic power plant job took him by surprise in 4Q.
Sharizan said FY14’s operating stats of depleting domestic orders, shrinking tender book, declining construction margins, and further delays in the India IPP venture suggest a more challenging earnings outlook from FY15, and were now potential de-rating catalysts.
“While other new regional IPP ventures may be positives, they are not sizeable enough to make an impact.
“We cut our FY15-16 EPS forecasts and target price, still based on a 40% RNAV discount. Downgrade to Reduce from Hold.
“Switch to Muhibbah Engineering Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), our preferred small/mid-cap pick,” he said.
[/size]
By TheEdge Markets.com / theedgemarkets.com | March 2, 2015 : 9:39 AM MYT
KUALA LUMPUR (March 2): [size=14]CIMB Research has downgraded Mudajaya Group Bhd ([You must be registered and logged in to see this image.] Financial Dashboard) to “Reduce” (from Hold) at RM1.63 and cut its target price to RM1.26 (from RM1.79) and said Mudajaya posted a core net loss in FY14 versus house and consensus' projected net profit forecasts.
In a note Feb 27, the research house’s Sharizan Rosely said a major provision (circa RM200 million) relating to cost overruns for a domestic power plant job took him by surprise in 4Q.
Sharizan said FY14’s operating stats of depleting domestic orders, shrinking tender book, declining construction margins, and further delays in the India IPP venture suggest a more challenging earnings outlook from FY15, and were now potential de-rating catalysts.
“While other new regional IPP ventures may be positives, they are not sizeable enough to make an impact.
“We cut our FY15-16 EPS forecasts and target price, still based on a 40% RNAV discount. Downgrade to Reduce from Hold.
“Switch to Muhibbah Engineering Bhd ([You must be registered and logged in to see this image.] Financial Dashboard), our preferred small/mid-cap pick,” he said.
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