Malaysia Market Watch 31st July 2012
KUALA LUMPUR – CIMB Research has maintained its Neutral rating on Uchi Technology at RM1.20 and cut its target price to RM1.13 from RM1.18, and said that in a recent conference call, Uchi reaffirmed its dividend guidance for FY12, having bagged enough orders for the rest of 2012.
In a note Monday, the research house said that it suspects that 2Q will be weaker q-o-q due to supplier issues which will be reversed in the following quarter.
“We lower our target price as we cut our CY13 P/E basis to 8.6x, after widening the discount to our revised target market P/E from 30% to 35% due to greater uncertainties in the US and eurozone.
“We reiterate our Neutral call as we see no immediate rerating catalysts. Switch to JCY or Unisem,” it said. – theedgemalaysia.com