Imaspro Corporation – Put this stock out to grass. Agrochemical and pesticide manufacturer, Imaspro’s 1QFY6/12 net profit of RM1.1m was below expectations, being only 11% of our full-year forecast. We had overestimated its cost pass-through ability and been too optimistic about the demand growth. On the dividend front, however, the company did not disappoint, declaring a single-tier first and final dividend of 3.5 sen. Factoring slower growth and weaker margins, we slash our FY12-14 EPS numbers by 10-24%. Our target price is chopped from RM1.13 to RM0.78, still pegged to a 40% discount to our target market P/E, revised from 14.5x CY12 to 12.6x CY13. We also downgrade the stock from Buy to SELL.
Malaysian Genomics Resource Centre – Gene therapy needed? EBIT margin compression from higher operating costs was to blame for Malaysian Genomics Resource Centre’s (MGRC) 1Q. Annualised 1QFY6/12 net profit was only 47% of our forecast, prompting us to slash FY12-13 EPS by 30-34%. This lowers our target price from RM0.41 to RM0.34 as we roll it forward and maintain a 40% discount to our target market P/E (revised from 14.5x CY12 to 12.6x CY13). We retain our SELL rating.
Malaysian Genomics Resource Centre – Gene therapy needed? EBIT margin compression from higher operating costs was to blame for Malaysian Genomics Resource Centre’s (MGRC) 1Q. Annualised 1QFY6/12 net profit was only 47% of our forecast, prompting us to slash FY12-13 EPS by 30-34%. This lowers our target price from RM0.41 to RM0.34 as we roll it forward and maintain a 40% discount to our target market P/E (revised from 14.5x CY12 to 12.6x CY13). We retain our SELL rating.
No comments:
Post a Comment