SINGAPORE (Jan 8): CIMB is maintaining its “hold” call on TalkMed Group with a lower target price of 68 cents from 92 cents previously, after cutting FY17-19F earnings per share (EPS) estimates by 18-21% to factor anticipated earnings losses from the recent suspension of the group’s key doctor and CEO, Ang Peng Tiam, on the grounds of professional misconduct in 2010.
See: TalkMed CEO Ang Peng Tiam handed 8-month suspension for professional misconduct in 2010
Following the announcement of Ang’s eight-month suspension starting from end-July in 2017, TalkMed posted a 17.2% decline in 3Q earnings to $7.1 million from $8.6 million a year ago, and said it expected Ang’s suspension to have a material impact on its revenue and earnings going forward.
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