AmBank maintains ‘underweight’ call on Pecca

Pecca’s automotive (car seat cover division) top line dropped 6% y-o-y in 9MFY20 to RM89.0mil.

KUALA LUMPUR: AmInvestment Bank Bhd Research (AmBank Research) has maintained its “underweight” call on Pecca Group Bhd with a lower fair value of RM0.55 per share from RM0.63 previously, after the group’s export business declined with weaker revenue contribution from Europe, which slid -31% year on year (y-o-y) and North America, which slowed down -25% y-o-y.

However, in a note yesterday, the research house said these were partially mitigated by higher sales contributions from Singapore and Africa, where the group posted stronger revenues of RM10.7mil (+5% y-o-y) and RM1.6mil (+14% y-o-y), respectively.