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RHB cuts press metal profit forecast, TP
Edited by : AL CIRCLE
1 min read
RHB Research Institute Sdn Bhd has cut its current year profit forecast for PRESS METAL BHD by 14.8%. This is in anticipation of a six-month operation halt which is expected to have a negative impact on the aluminium-processing entity’s earnings.
The profit downgrade follows the recent electricity-supply disruption in Sarawak where Press Metal runs an aluminium-smelting plant
In a note today, RHB analyst Ng Sem Guan said the research firm has also revised downward its target price for Press Metal shares to RM2.90 from RM3.31 previously. RHB has however kept its "buy" call for the stock.
Ng said Press Metal is still "unable to assess the full impact" of the electricity-supply disruption.
According to him, the firm will close its plant to facilitate major of the facility.
"Press’ board said Press Metal Sarawak Sdn Bhd has adequate insurance coverage and its insurers would ascertain the damage.
"As we are assuming a six-month halt in Press Metal Sarawak’s operations which is likely to wipe out its FY13 earnings, we classify its fixed and overhead costs during the period as exceptionals and cut our FY13 core profit forecast by 14.8%," Ng said.
The profit downgrade follows the recent electricity-supply disruption in Sarawak where Press Metal runs an aluminium-smelting plant
In a note today, RHB analyst Ng Sem Guan said the research firm has also revised downward its target price for Press Metal shares to RM2.90 from RM3.31 previously. RHB has however kept its "buy" call for the stock.
Ng said Press Metal is still "unable to assess the full impact" of the electricity-supply disruption.
According to him, the firm will close its plant to facilitate major of the facility.
"Press’ board said Press Metal Sarawak Sdn Bhd has adequate insurance coverage and its insurers would ascertain the damage.
"As we are assuming a six-month halt in Press Metal Sarawak’s operations which is likely to wipe out its FY13 earnings, we classify its fixed and overhead costs during the period as exceptionals and cut our FY13 core profit forecast by 14.8%," Ng said.
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