RHB Research maintains Outperform on DRB-Hicom

KUALA LUMPUR: RHB Research Institute said DRB-Hicom Bhd's
first quarter core net profit missed its expectations by 16% and was
17% short of consensus numbers but maintained its Outperform
recommendation.
The research house said on Friday the lower core
earnings were due to higher depreciation and interest expenses and
lower auto associates' contribution.
"But the property
division's return to profitability is cause for cheer. We cut our
FY13-14 earnings after updating for FY12 numbers. We also lower our
SOP-based target price after doubling the discount to 20% to reflect
short-term uncertainties after the Proton acquisition," it said.
Elaborating
on its Outperform recommendation on DRB-Hicom, RHB Research said that
apart from autos, it saw potential catalysts from its plans for Pos Malaysia, Bank Muamalat and the property development division.

drb miss estimate by 16%, lowered its earning forecasts, hurm till next earning forecast?