Poor quarter, yard space bottleneck a deterrent. As forewarned, results missed our forecast on a weaker QoQ performance, leading us to cut 2012 net profit forecast by 16%. Overall, MMHE is unlikely to outperform its peers this year. The current yard space bottleneck is a short-term constraint to taking on more jobs, for new space from Sime Darby's Pasir Gudang yard will only be freed up in 2014. For this reason, MMHE remains a Hold with a RM5.70 TP (20x 2013 EPS).
Maybank Research 22 Feb 2012
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