Home Capital Broker's Calls

PhillipCapital downgrades Micro-Mechanics to 'neutral' on priced-in positives

Felicia Tan
Felicia Tan2/11/2021 11:41 AM GMT+08  • 2 min read
PhillipCapital downgrades Micro-Mechanics to 'neutral' on priced-in positives
Micro-Mechanics, on Jan 29, reported a record quarterly revenue of $18.7 million for the 2QFY2021 ended December.
Font Resizer
Share to WhatsappShare to FacebookShare to LinkedInMore Share
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

PhillipCapital’s head of research Paul Chew has downgraded his recommendation on Micro-Mechanics Holdings to “neutral” from “accumulate” on stretched valuations.

Chew has, however, upped his target price on the counter to $3.35 from $2.93, as he increases FY2021 ex-cash price-to-earnings (P/E) from 18 times to 21 times, in line with its peers.

“Recent share-price rally has priced in its positive outlook and long-term merits such as 4% yields, 35% ROEs and a net-cash balance sheet,” says Chew on the recommendation downgrade in a Feb 8 report.

For more insights on corporate trends...
Sign In or Create an account to access our premium content.
Subscription Entitlements:
Less than $9 per month
Unlimited access to latest and premium articles
3 Simultaneous logins across all devices
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)
×
Loading next article...
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
Subscribe to The Edge Singapore
Get credible investing ideas from our in-depth stock analysis, interviews with key executives, corporate movements coverage and their impact on the market.
© 2022 The Edge Publishing Pte Ltd. All rights reserved.