PublicInvestment keeps 'outperform' on Johore Tin, cuts TP to RM1.82


Johore Tin's products are used in a wide range of packaging including biscuits, paints.

KUALA LUMPUR: PublicInvestment research cut its earnings forecast for Johore Tin Bhd on lower sales coupled with an expected delay in the commissioning of its Able Diaires Mexico plant.

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.
Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 18
Cxense type: free
User access status: 3
   

Did you find this article insightful?

Yes
No

Next In Business News

Airline stocks soaring, but there’s still a long way back
UK's Sunak says public finances won't be fixed overnight
Buffett upbeat on US and Berkshire, buys back stock
China's factory activity expands at a slower pace in February
CPO futures trading to remain range bound next week
Advisory panel unanimously recommends FDA authorize Johnson & Johnson COVID-19 vaccine
GameStop rally fizzles; shares still register 151% weekly gain
NYSE begins move to delist Chinese state oil producer CNOOC
Oil price drops on US$ strength and OPEC+ supply expectations
GLOBAL MARKETS-Globals stock slide on inflation fears

Stories You'll Enjoy


Vouchers