KUALA LUMPUR (Nov 23): KNM GROUP BHD [] shares fell in early trade on Wednesday after it posted net loss RM116.29 million for third quarter ended Sept 30, 2011 compared to net profit RM56.09 million a year earlier, due mainly to one off provision for foreseeable losses and credit impairments.
At 9.05am, KNM lost nine sen to RM1.14 with 2.73 million shares done.
The company said on Nov 22 that revenue for the quarter rose 6.41% to RM445.18 million from RM418.36 million in 2010.
Loss per share for the quarter was 11.88 sen compared to earnings per share of 5.69 sen a year earlier, while net assets per share was RM1.69.
There was no dividend declared or recommended during quarter under review.
However, KNM said it had adopted a dividend policy of distributing at least 50% of its consolidated net attributable after tax profit (subject to the availability of distributable reserves and compliance of financial covenants) with effect from financial year ending Dec 31, 2012.
For the nine months ended Sept 30, KNM posted net loss RM86.42 million compared to net profit RM110.57 million in 2010, while its revenue grew 19% to RM1.4 billion from RM1.17 billion.
MIDF Research downgraded KNM to Sell from Neutral with a lower target price of 85 sen (from R1.22), ascribing a lower targeted PER12 of 7x (from 8x), which is 1-std deviation below its 5-year historical multiple.
“The management also surprisingly announced a dividend policy of distributing at least 50% of its net profit.
“This appears like a desperate act to try to stem selling pressure expected after the huge loss in 3QFY11,” the research house said on Wednesday.
At 9.05am, KNM lost nine sen to RM1.14 with 2.73 million shares done.
The company said on Nov 22 that revenue for the quarter rose 6.41% to RM445.18 million from RM418.36 million in 2010.
Loss per share for the quarter was 11.88 sen compared to earnings per share of 5.69 sen a year earlier, while net assets per share was RM1.69.
There was no dividend declared or recommended during quarter under review.
However, KNM said it had adopted a dividend policy of distributing at least 50% of its consolidated net attributable after tax profit (subject to the availability of distributable reserves and compliance of financial covenants) with effect from financial year ending Dec 31, 2012.
For the nine months ended Sept 30, KNM posted net loss RM86.42 million compared to net profit RM110.57 million in 2010, while its revenue grew 19% to RM1.4 billion from RM1.17 billion.
MIDF Research downgraded KNM to Sell from Neutral with a lower target price of 85 sen (from R1.22), ascribing a lower targeted PER12 of 7x (from 8x), which is 1-std deviation below its 5-year historical multiple.
“The management also surprisingly announced a dividend policy of distributing at least 50% of its net profit.
“This appears like a desperate act to try to stem selling pressure expected after the huge loss in 3QFY11,” the research house said on Wednesday.
