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Neo Group’s financial position worrisome but is expected to show stronger earnings in coming quarters

Samantha Chiew
Samantha Chiew8/10/2017 11:33 AM GMT+08  • 2 min read
Neo Group’s financial position worrisome but is expected to show stronger earnings in coming quarters
SINGAPORE (Aug 10): RHB is maintaining its “neutral” rating on Neo Group with a target price of 64 cents even though the group is expected to show stronger improvement in earnings in the coming quarters.
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SINGAPORE (Aug 10): RHB is maintaining its “neutral” rating on Neo Group with a target price of 64 cents even though the group is expected to show stronger improvement in earnings in the coming quarters.

In a Thursday report, analyst Juliana Cai says that the group’s weak financial position is worrisome as its net gearing reached a record high of 204% following aggressive acquisitions in the past years.

“The interest coverage ratio was below 1x base on the FY17 full year result and the group is in a net liability position,” says Cai.

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