Kenanga Research downgrades Scientex, TP slashed

KUALA LUMPUR: Kenanga Research has downgraded Scientex Bhd to Underperform from Outperform, slashing target price to RM5.49 from RM7.63 following first quarter results that were weaker than expected.

The plastic packaging manufacturer and property developer’s 1Q15 net profit of RM30.3mil was below expectations, making up only 17.9% of the research house’s full year forecast of RM169.7mil – already lower than consensus forecast of RM180.3mil.