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=MARKET BUZZ: Malaysia’s SCGM Down 1.6% On Weak 3Q, Public Investment Cuts TP

KUALA LUMPUR (Mar 14) -- SCGM drops 1.6% to MYR1.87, lowest since Oct. 2015, after reporting 22.7% drop in fiscal 3Q net profit. Public Investment Bank notes, 9M results made up just 65% of street forecasts - dragged by 30.9% rise in operating costs that outweighed 26.4% increase in sales. Lowers target price to MYR2.47 from MYR3.02, reduces FY18-FY20 earnings forecasts by 14%-22% to factor for higher input cost. Still, keeps Outperform call. “We like the company for its recession-proof business, substantial capacity expansion in the pipeline and double-digit growth in the biodegradable plastic packaging products for the next few years,” house says.

- By Alexander Winifred;; +60320267363
- Edited By Lopamudra Bhattacharya
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