Stock Name: HL Asia
Company Name: HONG LEONG ASIA LTD.
DMG & Partners Research in a Mar 2 research report says: "HLA recorded 2011 net profit of $83.3 million, down 34% y-o-y. This is in line with our forecast $81 million. 4Q11 net profit of $8 million was sharply lower than our estimated 4Q10's $33 million (HLA provided restated 2010 numbers but not 4Q10).
"If we make one-time prior year adjustments relating to two subsidiaries, the y-o-y fall in net profit would be a smaller $15 million (instead of $25 million). The weakness was largely due to Xinfei.
"With the weak performance from the consumer goods segment likely to persist, we cut our FY2012 net profit forecast by 24% to $74.6 million. We downgrade target price to $1.80. SELL."
Company Name: HONG LEONG ASIA LTD.
| Research House: DMG | Price Call: SELL | Target Price: 1.80 |
DMG & Partners Research in a Mar 2 research report says: "HLA recorded 2011 net profit of $83.3 million, down 34% y-o-y. This is in line with our forecast $81 million. 4Q11 net profit of $8 million was sharply lower than our estimated 4Q10's $33 million (HLA provided restated 2010 numbers but not 4Q10).
"If we make one-time prior year adjustments relating to two subsidiaries, the y-o-y fall in net profit would be a smaller $15 million (instead of $25 million). The weakness was largely due to Xinfei.
"With the weak performance from the consumer goods segment likely to persist, we cut our FY2012 net profit forecast by 24% to $74.6 million. We downgrade target price to $1.80. SELL."
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