UMW at risk of being removed from FBM KLCI list by June, says HLIB Research

Posted on 16 March 2016
 

Source: The Edge Markets
Hong Leong IB Research has maintained its “Sell” rating on UMW Holdings Bhd with an unchanged target price of RM5.50 and said UMW faces deteriorating market conditions for Toyota, Perodua and O&G (including valued business) divisions.

In a note today, the research house said potentially lower dividend, given lower contribution from Toyota & Perodua, as well as inter-company loan to support UMW Oil & Gas Corporation Bhd  loan restructuring and capex requirement for aerospace manufacturing set up.

“UMW is also at risk of being removed from FBM KLCI list by June 2016, given its free float market capitalization dropped to 38th spot.

“Lack of catalysts, UMW’s share price is unlikely to move up.

“Maintain Sell with unchanged target price of RM5.50 based on SOP,”it said.



«  Back

Copyright © 2016 SEASI Site. All Rights Reserved.