=MARKET BUZZ: Malaysia's Eastern & Oriental Falls On Weak 3Q; RHB Cuts Call
KUALA LUMPUR (Feb 14) -- Eastern & Oriental falls 1.4% to MYR1.43, as its 3Q net profit fell 29% on year, missing expectations. RHB Investment Bank downgrades stock to Neutral from Trading Buy, cuts target price to MYR1.58 from MYR2.10; expects FY18's new sales to fall to MYR350 million from MYR381 million in FY17. "The upcoming general election would likely affect the timing of the entry of potential strategic investors in STP2A (Seri Tanjung Pinang 2A), which management previously guided to be in 1H18," says house in investor note. Adds, "given the sluggish property market outlook, we trim our price assumptions slightly for the balance parcels at STP2A in our RNAV (Realizable Net Asset Value) estimate."
- By Chong Sin Hao; Dave.Chong@nikkeinewsrise.com; +60320267363
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