In a note yesterday, the research house said UMW plans to complete the disposal of the non-listed oil and gas assets by end-2017. “We expect gradual earnings recovery for UMW in FY17 in view of sluggish demand in automotive segment and potential earnings drag from oil & gas in 1H17. “We raise our FY17-19F EPS by 9% to reflect higher automotive contribution from upcoming new model launches in 2H17 and better margins for M&E division. “However, we see limited upside to share price as the stock is up 18% mom. Hence, we downgrade the stock to Hold with a higher RM5.50 target price,” it said.

Source: The Edge Markets February 22, 2017 00:56 UTC