Published: Wednesday August 29, 2012 MYT 9:22:00 AM
CIMB Research: FGVH’s H1 core earnings below expectations
“The negative surprises came from weaker production, higher costs of production, lower sugar contributions and the RM40.6mil listing expense charge,” it said.
CIMB Research reduced its FY12 net profit forecast by 6% to account for higher costs, listing expenses and lower FFB production and fine-tune FY13-14 earnings by 1%-2%.
“Maintain Neutral with a lower target price, still based on a 10% discount to sum-of-parts. We see near-term support from its 5.5 sen interim dividend and M&A possibilities,” it said.