Challenging outlook for MSM on overcapacity

“The lower demand for refined sugar in an overcapacity industry suggests that it will take a longer time for the group to turn around its business from a loss position," says CGS-CIMB Equities Research.

PETALING JAYA: The outlook for MSM Malaysia Holdings Bhd is expected to remain challenging, as the lower demand for refined sugar in an overcapacity industry will take a longer time for the group to turn around its business from a loss position.

CGS-CIMB in a report yesterday said it was slashing MSM’s 2020 to 2022 core net profit estimates from 49% to 239% to reflect lower refining margins for the company.