KUALA LUMPUR (Nov 2): CIMB Equities Research is retaining its Underperform on UNISEM (M) BHD [] as its results for the third quarter ended Sept 30, 2011 were a letdown and the outlook is not expected to improve.
It said on Wednesday that poor demand and low utilisation were the de-rating catalysts.
“Revenue and margin disappointment led to a 9M11 net profit that was only 46% of our full-year forecast and 36% of consensus forecast.
“We slash our EPS, which trims our target price, still based on a 20% discount to its five-year historical average P/BV of 1.0 times. Retain Underperform,” it said.
Unisem reported on Tuesday its 3Q earnings fell 89.7% to RM5.27 million in the third quarter from RM51.53 million a year ago and cautioned demand for the group’s products and services to remain weak for the next quarter due to global economic uncertainty. Its revenue dropped 22.2% to RM288.19 million from RM370.69 million.
It said on Wednesday that poor demand and low utilisation were the de-rating catalysts.
“Revenue and margin disappointment led to a 9M11 net profit that was only 46% of our full-year forecast and 36% of consensus forecast.
“We slash our EPS, which trims our target price, still based on a 20% discount to its five-year historical average P/BV of 1.0 times. Retain Underperform,” it said.
Unisem reported on Tuesday its 3Q earnings fell 89.7% to RM5.27 million in the third quarter from RM51.53 million a year ago and cautioned demand for the group’s products and services to remain weak for the next quarter due to global economic uncertainty. Its revenue dropped 22.2% to RM288.19 million from RM370.69 million.
