=MARKET BUZZ: Malaysia's Scientex Falls To 18-Month Low Ahead 3Q Results
KUALA LUMPUR (Jun 14) -- Scientex +0.6% at MYR6.51, lowest since Dec 2016, ahead of its 3Q results announcement, expected later this month. TA Securities downgrades stock to Hold, cuts target price to MYR7.00 on higher oil prices; expects company to post net profit of MYR60-70 million in 3Q. "We are reducing Scientex’s FY18 and FY19 earnings projections by 18.8% and 27.6% respectively. This is after revising our FY18 in-house crude oil price assumptions to $70/barrel from $60/barrel previously," says house in investor note. Fossil fuel resins make up of more than 50% of production cost for the group’s manufacturing division, says house. "Moving forward, industry experts believe that LDPE (Low-Density Polyethylene) price will continue to increase in line with increasing global demand and increasing crude oil prices," adds house.
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