KUALA LUMPUR: The quarterly earnings contraction has exerted heavy pressures on Malakoff Bhd’s share price, which dipped to an all-time low of RM1.17 last Friday. Malakoff’s share price has been on downhill since October last year after it had hovered at around RM1.60 most part of the year. The current share price sits 18% below the consensus’ 12-month target price of RM1.43, which is based on estimates by 18 out of 20 analysts. The IPP has warned in the result note that the power purchase agreement (PPA) for the Segari Energy Venture (SEV) power plant would expire in June. However, assuming the share price remains constant, it faces limited upside as earnings visibility remains weak.

Source: The Edge Markets February 27, 2017 01:18 UTC