Stock Name: HL Asia
Company Name: HONG LEONG ASIA LTD.
DMG & Partners Research in a May 17 research report says: "HLA recorded 1Q12 net profit of $13.9 million, down 25% y-o-y, representing 19% of our previous FY2012 forecast. "The weakness is due to continued losses at Xinfei and a 18% y-o-y decline in Yuchai diesel engine unit sales. However, the building materials unit performed well and offset some of the negatives. Management expects Xinfei and Yuchai to face further challenges ahead. "We cut our FY2012 net profit forecast by 20%, and lower our target price to $1.43, derived from SOTP. We see no catalyst driving the share price up when both white-goods and diesel engines businesses are weak. At the same time, rising global economic concerns could exert further share price downside. MAINTAIN SELL."
Company Name: HONG LEONG ASIA LTD.
| Research House: DMG | Price Call: SELL | Target Price: 1.43 |
DMG & Partners Research in a May 17 research report says: "HLA recorded 1Q12 net profit of $13.9 million, down 25% y-o-y, representing 19% of our previous FY2012 forecast. "The weakness is due to continued losses at Xinfei and a 18% y-o-y decline in Yuchai diesel engine unit sales. However, the building materials unit performed well and offset some of the negatives. Management expects Xinfei and Yuchai to face further challenges ahead. "We cut our FY2012 net profit forecast by 20%, and lower our target price to $1.43, derived from SOTP. We see no catalyst driving the share price up when both white-goods and diesel engines businesses are weak. At the same time, rising global economic concerns could exert further share price downside. MAINTAIN SELL."
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