Affin Hwang maintains 'sell' on SLP Resources, TP raised to 45 sen


KUALA LUMPUR: Affin Hwang Capital research has maintained its "sell" recommendation on SLP Resources Bhd following the release of weak first quarter earnings.

SLP's core net profit for the quarter fell 26% year-on-year to RM4.1mil, which was only 17% of market full-year estimates but 27% of Affin Hwang's full-year forecast.

Revenue for the quarter dropped 21% due to weaker export sales to Japan, Europe and Australia.

The group declared a first interim dividend of one sen for the quarter.

Affin Hwang said it remains cautious of SLP's near-term prospects against the soft global economy amid the Covid-19 outbreak.

"We make no changes to our earnings estimates but raise our target price to RM0.45 (RM0.40 previously) after rolling over the valuation base year to 2021E EPS but on an unchanged PE multiple of 8x," it said.

SLP last traded at 88 sen a share on Wednesday, which gives the stock a 48.9% downside.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3
Join our Telegram channel to get our Evening Alerts and breaking news highlights
   

Next In Business News

Infineon opens Austria plant early in chip capacity boost
Indonesia may reopen to tourists from some countries in October
Airbus reaches deal to restructure AirAsia jet order
Oil price falls as storm-hit US supply trickles back into market
World shares fall as markets await Fed meeting, taper timeline
Gadang’s subsidiary bags RM100mil deal
Big sales jump for EcoWorld Malaysia in Q3
Hitting the reset button for corporate Malaysia
KWAP’s journey with ESG investing
Short Position - Johor Corp restructuring, Top Glove, digitil isation

Stories You'll Enjoy


Vouchers