=MARKET BUZZ: Malaysia’s Supermax Jumps 4%; Clarifies 4Q Profit Plunge - CIMB
KUALA LUMPUR (Oct 18) -- Supermax Corp. climbs 4% to MYR3.13. CIMB Investment Bank says company Wednesday clarified 70.5% sequential drop in 4Q profit due to one-off forex loss from USD loans, impairment from works on existing plant and higher-than-expected tax expenses; upgrades stock to Add from Hold with MYR3.84 target price. Stock down 23% since 4Q results missed expectations; CIMB says risk-reward now attractive, notes, shares currently trading below 5-year historical mean of 15.2x, 50% discount to sector CY19 P/E. CIMB analyst Walter Aw says Supermax plans to spread out tax costs over four quarters from here on, expects “more stable” USD/MYR. Aw expects Supermax to report stronger 1Q sequentially.
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