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;
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