Bursa Malaysia Stock Watch

UMW Holdings (Hold): Strong undercurrents

kltrader
Publish date: Tue, 29 Nov 2011, 10:39 AM
kltrader
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Flood shuts part of earnings. We cut 2012 net profit forecast by 10%. The prevailing auto parts issue in Thailand and inventory shortfall will short charge UMW's Toyota sales in 1Q12. We remain less sanguine of the O&G division, which is unlikely to return to the black in 2012 due to persistent strong headwinds. UMW remains a Hold with a reduced target price of RM6.10, based on 11x 2012 EPS (unchanged).

Maybank research (29 November 2011)

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