RHB cuts Century Logistics to underperform
KUALA LUMPUR, May 11 — RHB Research lowered its call on Malaysia’s Century Logistics Holdings Bhd to underperform from outperform after the logistics services company announced weaker than expected 1Q12 earnings.
In a research note today, RHB said Century’s first quarter net profit of RM4.3 million came in below expectations, accounting for 13.8 per cent of consensus full-year estimates.
“We believe earnings risks have risen and we downgrade the stock to underperform (from outperform),” RHB said.
RHB said the weaker earnings were partly due to start-up losses and lower-than-expected contribution from the ship-to-ship (STS) segment.
“The ongoing strike by container haulage drivers had indirectly hampered its total logistics segment,” RHB added.
RHB cut its fair value estimates to RM1.63 per share from RM2.09.
As of 0345 GMT (1045 Malaysian time), Century’s shares fell 3.33 per cent, underperforming the Malaysian benchmark stock index which was unchanged. — Reuters