KUALA LUMPUR (Feb 27): Kawan Food Bhd shares fell 6.12% in thin trade at mid-morning today, after CIMB IB Research maintained its “Add” rating on Kawan Food Bhd (Kawan) at RM4.41, with a lower target price of RM5.15 (from RM5.56) and said that at 87% of FY16 forecasts, Kawan’s net profit was below consensus and house expectations, mainly due to higher-than-expected adex and promotional expenses. At 10.24am, Kawan lost 27 sen to RM4.14, with 26,100 shares traded. In a note Feb 26, the research house said Kawan’s new factory is facing teething issues; to start only from early 2H17 onwards. We cut FY17-18F EPS to reflect taxes to be paid. “Still an Add, but target price falls from RM5.56 to RM5.15, following FY17-18F EPS cuts,” it said.

Source: The Edge Markets February 27, 2017 02:58 UTC