OSK Research Sdn Bhd has lowered Ajiya Bhd's net profit forecast by 12.1 per cent and 11 per cent for the financial years 2011 (FY11) and 2012, respectively.
"Ajiya reported nine-month FY11 results that were below our forecast," OSK said in a research note today.
It said Ajiya's revenue and net profit dwindled quarter-on-quarter by 14.5 per cent and 62.1 per cent, respectively, due to slower sales and rising raw material costs.
The research firm said the company continued to face challenges of rising input costs.
Despite lowering the net profit forecast, OSK maintained the positive view on Ajiya for FY12. It also maintained its "buy" recommendation with a lowered fair value (FV) to RM1.94 from RM2.17.
OSK said: "We still think Ajiya is a "buy", given the still significant price upside to our FV, and we still think it should benefit from the projects under the Economic Transformation Programme, which the company has been gearing up for since earlier this year." -- Bernama
"Ajiya reported nine-month FY11 results that were below our forecast," OSK said in a research note today.
It said Ajiya's revenue and net profit dwindled quarter-on-quarter by 14.5 per cent and 62.1 per cent, respectively, due to slower sales and rising raw material costs.
The research firm said the company continued to face challenges of rising input costs.
Despite lowering the net profit forecast, OSK maintained the positive view on Ajiya for FY12. It also maintained its "buy" recommendation with a lowered fair value (FV) to RM1.94 from RM2.17.
OSK said: "We still think Ajiya is a "buy", given the still significant price upside to our FV, and we still think it should benefit from the projects under the Economic Transformation Programme, which the company has been gearing up for since earlier this year." -- Bernama
