OSK Research is maintaining a "buy" call for MMC Corp Bhd at a fair value of RM3.65, as the company's performance was within expectations and largely driven by an absence in provisions and reversal of profits, although the numbers still fell below consensus expectations.
In a statement today, OSK Research said it was raising the forecast due to a change in the way MMC reports its numbers, which led the research firm to tweak up its transport margin forecast.
"We are revising upward our financial year 2011 forecast by 6.9 per cent and that for financial year 2012 by 2.2 per cent on an upward revision in transport and infrastructure margins," it said.
Meanwhile, OSK Research said the delay in Gas Malaysia’s initial public offering (IPO) is not a serious one, although it cautioned that MMC would need such catalysts to unlock value and drive up its share price.
It anticipated that it would be difficult for Gas Malaysia to get its Gas Supply Agreement signed with Petronas until year-end.
"However, we are not too disappointed with MMC's announcement that Gas Malaysia IPO's would be pushed back, most likely to the first quarter 2012," OSK Research said.
"We feel there is no harm done from this slight delay as market conditions may stabilise moving into the second quarter 2012," it added. -- Bernama
In a statement today, OSK Research said it was raising the forecast due to a change in the way MMC reports its numbers, which led the research firm to tweak up its transport margin forecast.
"We are revising upward our financial year 2011 forecast by 6.9 per cent and that for financial year 2012 by 2.2 per cent on an upward revision in transport and infrastructure margins," it said.
Meanwhile, OSK Research said the delay in Gas Malaysia’s initial public offering (IPO) is not a serious one, although it cautioned that MMC would need such catalysts to unlock value and drive up its share price.
It anticipated that it would be difficult for Gas Malaysia to get its Gas Supply Agreement signed with Petronas until year-end.
"However, we are not too disappointed with MMC's announcement that Gas Malaysia IPO's would be pushed back, most likely to the first quarter 2012," OSK Research said.
"We feel there is no harm done from this slight delay as market conditions may stabilise moving into the second quarter 2012," it added. -- Bernama
