Stock Name: HL Asia
Company Name: HONG LEONG ASIA LTD.
CIMB in a Nov 14 research report says: "9M11 core profit is below, at 64% and 56% of CIMB and consensus estimates. Core earnings this quarter were only $1.8 million, after stripping out a $26 million gain from the sale of the Karriumun quarry.
"Results were dragged down by a $13.8 million bust demand from the construction industry. Xinfei reported a $13.8 million loss for 3Q and $31.4 million loss for 9M11. Unit sales declined 9% vs. the 50% growth for the industry in the quarter.
"HLA's new CEO plans to turn around the unit by developing differentiated products; however, a combination of near-term competitive pressures, the expiry of rural subsidies and upcoming cold season in China could continue to weigh on Xinfei. Target price of $1.66. MAINTAIN UNDERPERFORM."
Company Name: HONG LEONG ASIA LTD.
| Research House: CIMB | Price Call: SELL | Target Price: 1.66 |
CIMB in a Nov 14 research report says: "9M11 core profit is below, at 64% and 56% of CIMB and consensus estimates. Core earnings this quarter were only $1.8 million, after stripping out a $26 million gain from the sale of the Karriumun quarry.
"Results were dragged down by a $13.8 million bust demand from the construction industry. Xinfei reported a $13.8 million loss for 3Q and $31.4 million loss for 9M11. Unit sales declined 9% vs. the 50% growth for the industry in the quarter.
"HLA's new CEO plans to turn around the unit by developing differentiated products; however, a combination of near-term competitive pressures, the expiry of rural subsidies and upcoming cold season in China could continue to weigh on Xinfei. Target price of $1.66. MAINTAIN UNDERPERFORM."
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