Malaysia's Hong Leong Bank lags on analyst
revisions among 31 companies in the country's financials sector
tracked by at least three analysts, data from Thomson Reuters
The company has an Analyst Revision Model (ARM) score of 25,
the lowest in the sector. This score has declined 56 points over
the past 30 days. Its gross margin for the four quarters ending
March 2012 lags the industry average by nearly 6 percent.
Hong Leong Bank's free cash flow declined 7.7 billion
ringgit to negative 4.3 billion ringgit between March 2011 and
March 2012. Its net income, meanwhile, rose over 60 percent to
465 million ringgit during the same period.
Fourteen of 23 analysts tracking the stock have cut EPS
estimates for 2013 by an average of 2.4 percent, while 17 of the
23 have cut estimates for 2014 by an average of 2.9 percent
since Aug. 28.
Of the 23 analysts tracking the stock, 11 give it a 'strong
buy' or 'buy' rating, seven recommend a 'hold' and five have a
'sell' or 'strong sell' rating.
The stock currently trades at 69 percent of its intrinsic
value of 19.11 ringgit. It is now up 21.65 percent year-to-date.
while the broader index is up nearly 6 percent for the
same period, as of Wednesday's close.
At the other end of the spectrum, Bimb Holdings,
Pavilion Real Estate Investment and Eastern & Oriental
lead the Malaysian financials sector on analyst
revisions with scores of 98, 95 and 93 respectively.
StarMine's Analyst Revision Model ranks stocks based on
analysts' revision of earnings and revenue estimates and changes
in their ratings and usually gives additional weight to analysts
who have been more accurate in the past.
(Reporting by Reshma Apte; Editing by Sunil Nair)