| THIS IS MEMANG VALUE TRAP????????????? Maybank IB maintains Buy on YTL Power, lowers target price to RM1.70 |
| Business & Markets 2013 |
| Written by Zatil Husna of theedgemalaysia.com |
| Wednesday, 03 April 2013 10:01 |
“We shave FY13-15 net profits by 5%/8%/10% to reflect lower contributions from Wessex Water (weaker GBP) and PowerSeraya (lower margins),” it said in a note Wednesday. The research house said that the resumption of share buy-backs suggests a price floor may have been found. “The group faces operational headwinds, but we think this is unlikely to have material impact on share price performance,” said the research house. According to Maybank IB, the recent corporate actions are supportive of an eventual share swap. “Thus, we reiterate our “buy” rating on YTLP. The stock risks becoming a value trap if no privatization offer is made,” it said. As of 9.46AM today, the stock price fell RM0.03, from RM1.45 with 21,106 shares traded. |