KUALA LUMPUR (May 3): Shares of Globetronics Technology Bhd fell more than 8% in Wednesday’s (May 3) morning trade after its dismal results for the first quarter ended March 31, 2023 (1QFY2023), prompting some analysts to cut their target prices and earnings forecasts.

However, by market close, its losses were pared to six sen or 5.45%, the counter ending at RM1.04 which translates into a market capitalisation of RM696.22 million. Trading volume amounted to 4.52 million shares, more than three times Tuesday’s trading volume of 1.3 million shares.

The counter has fallen 9.57% year to date and 22.96% over the past year. Analysts have five ‘hold’, two ‘sell’ and two ‘buy’ ratings with a consensus target price (TP) of RM3.11, according to Bloomberg data.

Globetronics posted a 65.08% drop in 1Q net profit to RM3.3 million from RM9.45 million, while revenue fell 22.67% to RM33.13 million from RM42.84 million in the same quarter a year earlier due to lower volume loadings or production units from its customers, followed by higher tax expense and foreign exchange (forex) losses.

RHB Research and AmInvestment Bank Bhd have trimmed their TPs and earnings forecasts for the stock.

RHB trimmed its TP to RM1.01 from RM1.05 and maintained its ‘neutral’ recommendation for Globetronics. AmInvestment Bank Bhd, which retains its ‘hold’ rating for the counter, reduced its TP by 11.61% to 99 sen from RM1.12.