Prospects looking sweeter for MSM on higher prices

CGSCIMB upgraded the MSM counter from reduce to hold, with a higher target price of 88 sen, on the back of improving earnings prospects.

PETALING JAYA: Prospects are starting to look sweeter for MSM Malaysia Holdings Bhd following the increase in its average selling price (ASP) for its wholesale and retail sugar products in October last year.

CGSCIMB Research said the worse could be over for the sugar producer as it will be banking on its higher ASP and lower costs to reduce losses in FY20F, coupled with the fact that it has used up all its raw sugar contracts that were locked in at high prices.