Friday 29 Mar 2024
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KUALA LUMPUR (Jan 23): JF Apex Securities Research has maintained its “Buy” rating on Pantech Group Holdings Bhd with a lower target price of RM1.04 (from RM1.14) and said Pantech’s quarterly revenue fell 5.4% year-on-year (y-o-y) to RM124 million while net profit lost 25% y-o-y to RM9.1 million due to the lower performance of the Trading division.

In a note Friday, the research house said following the lower 3QFY15, it was cutting its FY15 and FY16 forecasts pursuant to slower-than-anticipated contribution from the Refinery and Petrochemical Integrated Development (RAPID) in Pengerang, Johor.

“Forecasts FY15 revenue and net profit are reduced by 14.8% and 15.8% respectively. For FY16, we revise downwards the revenue and net profit estimates by 9.1% and 12% respectively.

“Our target price is based on FY16 EPS forecast of 10.1 sen and average PER of 10.3 times for local steel and pipe companies,” it said.

 

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