However, the research house anticipates a gradual improvement in Johore Tin earnings as the global economy recovers and production ramps up post-movement control order.
It said Johore Tin expects its F&B segment to continue to be profitable despite volatility in raw material prices, uncertainties in the global economy and its recent impact on the Covid-19 pandemic.
The research house maintained its "outperform" recommendation on the stock with a target price of RM1.82, lowered from RM2.11 previously.
"We adjust downwards our forecasts by 9-40% for FY20-22F, to account for lower sales, couple with an expectation of a delay in the commissioning of its 40%-Able Dairies Mexico plant to 2HFY21," it said.
For 1QFY20, Johore Tin posted a net profit of RM4.5mil for 1QFY20, which was 59% lower year-on-year.
The result was below PublicInvestment and consensus expecations at 12% and 13% of their respective full-year estimates.
The weaker result came on the back of 1Q20 revenue of RM108mil as compared to RM141mil in the previous corresponding quarter as sales in its tin manufacturing and F&B segments declined.
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