Bursa Malaysia Stock Watch

KNM Group (Sell): Riding through a transition phase

kltrader
Publish date: Fri, 13 Jan 2012, 01:29 PM
kltrader
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Target price cut to RM0.88 (-19%) following a 10-19% downgrade in FY12-13F earnings forecasts on lower revenue recognition. While margin pressure has abated on improving order flows, we are cautious of KNM's cost management abilities and so retain a conservative stance on our estimates. KNM needs to deliver a consistent set of quarterly results to warrant a re-rating. Sell maintained.


Maybank research (13 January 2012)

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