STOCKS NEWS MALAYSIA-RHB cuts APM Automotive fair value
RHB Research lowered its fair value on APM Automotive Holdings Bhd citing an "unspectacular" earnings forecast and a challenging short-term operational outlook.
The automotive component maker remains reliant on sales to domestic original equipment manufacturers (OEMs) and has been struggling to break into regional automotive markets, RHB said in a note on Monday.
The research house said it expected APM to report steady but unexciting results in the fourth quarter of its financial year ending December 2012, forecasting net profit to rise 10.5 percent on quarter but dipping 11.9 percent year-on-year.
RHB lowered its earnings estimates for APM by 18.3 percent to 123.8 million ringgit for 2013, and by 20.2 percent to 132.8 million ringgit for 2014, after cutting out the wider margins from the weaker Japanese yen and on assumption that APM's customers will claw back gains going forward.
APM shares were untraded on the Malaysian benchmark stock index that was down 0.2 percent.
1019 (0219 GMT) (Reporting by Anuradha Raghu; Editing by Gopakumar Warrier; firstname.lastname@example.org; Reuters Messaging: email@example.com)
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