MARKET DEVELOPMENT
Shares Of Boustead Holdings Down On Weak 1Q Performance
Shares Of Boustead Holdings Down On Weak 1Q Performance
27/05/2015 (Bernama) - Shares of Boustead Holdings Bhd were 8.0 sen lower at RM4.32 at mid-morning today on a lower-than-expected first quarter (1Q) ended March 31, 2015 performance.
As at 11.02 am, Boustead Holdings also saw 100,400 shares transacted.
The company's pre-tax profit fell to RM69.5 million for the 1Q 2015 from RM133.3 million in the same period last year on the back of lower revenue of RM1.89 billon from RM2.5 billion.
Kenanga Research downgraded the company's 2015 and 2016 financial year net profits estimates by 18 per cent each, after taking into account an anticipated lower contribution from its plantations division.
"The plantations earnings will hinge largely on the crude palm oil price movement since 91 per cent of the land has already matured, making the medium-term outlook look less promising.
"Correspondingly, we downgrade the stock to "Market Perform" from "Outperform" with a lower target price of RM4.40 from RM5.01 previously," it said in a note.
As at 11.02 am, Boustead Holdings also saw 100,400 shares transacted.
The company's pre-tax profit fell to RM69.5 million for the 1Q 2015 from RM133.3 million in the same period last year on the back of lower revenue of RM1.89 billon from RM2.5 billion.
Kenanga Research downgraded the company's 2015 and 2016 financial year net profits estimates by 18 per cent each, after taking into account an anticipated lower contribution from its plantations division.
"The plantations earnings will hinge largely on the crude palm oil price movement since 91 per cent of the land has already matured, making the medium-term outlook look less promising.
"Correspondingly, we downgrade the stock to "Market Perform" from "Outperform" with a lower target price of RM4.40 from RM5.01 previously," it said in a note.