Stock Name: Mewah
Company Name: MEWAH INTERNATIONAL INC.
CIMB in an Aug 15 research report says: "2Q11 earnings sank 63% y-o-y and 64% q-o-q to US$6.0 million, taking 1H net profit to US$23.1 million, which, at 21% of our and consensus full-year forecasts, was way below expectations.
"The main culprits were (1) severe margin erosion for all segments as the operating environment deteriorated in tandem with the weakening of crude palm oil price, and (2) lacklustre volumes due to soft demand.
"Slashing our volume and margin assumptions, we chop FY2011-2013 EPS by 63-67%. This reduces our target price from $1.29 (11.5x CY12 P/E) to 36 cents (10.2x CY12 P/E), still based on a 20% discount to peers. DOWNGRADE TO UNDERPERFORM."
Company Name: MEWAH INTERNATIONAL INC.
| Research House: CIMB | Price Call: SELL | Target Price: 0.36 |
CIMB in an Aug 15 research report says: "2Q11 earnings sank 63% y-o-y and 64% q-o-q to US$6.0 million, taking 1H net profit to US$23.1 million, which, at 21% of our and consensus full-year forecasts, was way below expectations.
"The main culprits were (1) severe margin erosion for all segments as the operating environment deteriorated in tandem with the weakening of crude palm oil price, and (2) lacklustre volumes due to soft demand.
"Slashing our volume and margin assumptions, we chop FY2011-2013 EPS by 63-67%. This reduces our target price from $1.29 (11.5x CY12 P/E) to 36 cents (10.2x CY12 P/E), still based on a 20% discount to peers. DOWNGRADE TO UNDERPERFORM."
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