DRB-Hicom Bhd fell one sen or 0.389 percent to RM2.56, as at 12.30 pm, after the conglomerate announced net profits fell 28 per cent to RM80 million in the third quarter ended Dec 31, 2011.
In a statement today, HwangDBS Vickers Research said the result was below forecast mainly due to lower automotive earnings from Honda as a result of the Thai floods and lower services earning as Alam Flora lost the Selangor concession.
However, it said these were merely temporary hiccups due to the Honda plant in Thailand which would resume operations end-March.
"Alam Flora is also slated to penetrate two new states and would charge higher tariff now after migrating to a concession structure," HwangDBS added.
It cut DRB-Hicom's financial year 2012-2014 forecast earnings by between three and 11 per cent after accounting for weaker Honda and Alam Flora earnings.
HwangDBS maintained its buy recommendation on DRB-Hicom with a target priceof RM3.45. -- Bernama
In a statement today, HwangDBS Vickers Research said the result was below forecast mainly due to lower automotive earnings from Honda as a result of the Thai floods and lower services earning as Alam Flora lost the Selangor concession.
However, it said these were merely temporary hiccups due to the Honda plant in Thailand which would resume operations end-March.
"Alam Flora is also slated to penetrate two new states and would charge higher tariff now after migrating to a concession structure," HwangDBS added.
It cut DRB-Hicom's financial year 2012-2014 forecast earnings by between three and 11 per cent after accounting for weaker Honda and Alam Flora earnings.
HwangDBS maintained its buy recommendation on DRB-Hicom with a target priceof RM3.45. -- Bernama
