Research firms downgrade Proton, MAS
Published: May 26, 2011 5:09 AM | Updated: May 26, 2011 5:31 AM
Two research firms have downgrade the earnings forecast of government-linked companies Proton Holdings Bhd and Malaysia Airlines (MAS).
Two research firms have downgrade the earnings forecast of government-linked companies Proton Holdings Bhd and Malaysia Airlines (MAS).
OSK Research has downgraded Proton’s earnings forecast for the next financial year by 21 percent on the 50 percent and 18 percent cut in export volume and revenue respectively.
"We do not see any excitement for the next financial year given the absence of a significant product line-up," the research firm said in a note today.
It said Proton's exports are likely to remain flattish at best as it is a cost burden to the company given the high bill of materials (BOM) cost.
Proton recorded a 17.5 percent decrease in pre-tax profit for the financial year ended March 31, 2011 to RM215 million from RM261 million previously.
It's full-year revenue increased to RM8.98 billion from RM8.23 billion previously.
For the fourth quarter ended March 31, 2011, Proton registered a jump in pre-tax profit to RM80.855 million from RM12.903 million in the same period of last year on the back of increasing car sales.
The growing demand for Proton cars was reflected in revenue for the quarter under review, soaring to RM2.6 billion against the RM2.2 billion, recorded during the corresponding period of the previous financial year.
OSK said this year's model pipeline could be limited to facelifts of the Exora and Saga.
"Proton is targeting to launch the Persona replacement sometime early next year. But we do not discount the possibility of a further launch delay as the car maker is seeking cheaper alternative sources of parts to reduce overall BOM cost," it added.
It said revenue will be boosted by the after sales and spare parts markets with earnings to be enhanced by ongoing cost efficiency initiatives.
MAS affected by escalating fuel prices
Meanwhile, MIDF Research has downgraded Malaysia Airlines to a "sell" and reduced its target price to RM1.24, from RM2.40 previously, as its expects the airlines' second quarter to be impinged.
Factors affecting the downgrade are the limited implied upside potential, pressure from escalating fuel prices, impact from the Middle East and North Africa civil unrest and the natural disaster in Japan, MIDF said in a note today.
The research firm has also decreased its earnings forecast for financial year 2011 and 2012, between 31 and 58 per cent, to reflect the lower-than-expected first quarter earnings and rising fuel prices.
"On top of that, the management is planning new revenue management system to be rolled out in the third quarter to improve pricing methodology and revenue.
"Hence, we remain upbeat on its long-term prospects," it added.
- Bernama
OSK Research has downgraded Proton’s earnings forecast for the next financial year by 21 percent on the 50 percent and 18 percent cut in export volume and revenue respectively.
"We do not see any excitement for the next financial year given the absence of a significant product line-up," the research firm said in a note today.
It said Proton's exports are likely to remain flattish at best as it is a cost burden to the company given the high bill of materials (BOM) cost.
Proton recorded a 17.5 percent decrease in pre-tax profit for the financial year ended March 31, 2011 to RM215 million from RM261 million previously. It's full-year revenue increased to RM8.98 billion from RM8.23 billion previously.
For the fourth quarter ended March 31, 2011, Proton registered a jump in pre-tax profit to RM80.855 million from RM12.903 million in the same period of last year on the back of increasing car sales.
The growing demand for Proton cars was reflected in revenue for the quarter under review, soaring to RM2.6 billion against the RM2.2 billion, recorded during the corresponding period of the previous financial year.
OSK said this year's model pipeline could be limited to facelifts of the Exora and Saga.
"Proton is targeting to launch the Persona replacement sometime early next year. But we do not discount the possibility of a further launch delay as the car maker is seeking cheaper alternative sources of parts to reduce overall BOM cost," it added.
It said revenue will be boosted by the after sales and spare parts markets with earnings to be enhanced by ongoing cost efficiency initiatives.
MAS affected by escalating fuel prices
Meanwhile, MIDF Research has downgraded Malaysia Airlines to a "sell" and reduced its target price to RM1.24, from RM2.40 previously, as its expects the airlines' second quarter to be impinged.
Factors affecting the downgrade are the limited implied upside potential, pressure from escalating fuel prices, impact from the Middle East and North Africa civil unrest and the natural disaster in Japan, MIDF said in a note today. The research firm has also decreased its earnings forecast for financial year 2011 and 2012, between 31 and 58 per cent, to reflect the lower-than-expected first quarter earnings and rising fuel prices.
"On top of that, the management is planning new revenue management system to be rolled out in the third quarter to improve pricing methodology and revenue.
"Hence, we remain upbeat on its long-term prospects," it added.
- Bernama
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