SINGAPORE (Dec 27): RHB Research is maintaining its “buy” call on Yoma Strategic while lowering its target price to 57 cents from 66 cents, after the stock’s recent share price recovery from all-time low levels in Oct.
The lower target price comes after introducing a higher 20% discount to SOP valuations from 15% previously to factor in higher regulatory and political risks. At the same time, RHB has lowered its FY19-20F net profit forecasts to account for lower margins for real estate projects.
In a Wednesday report, analyst Vijay Natarajan says he believes the stock’s recent share price weakness stemmed from a combination of factors such as a slowdown in the real estate market as well as emerging market (EM) fund outflow and political tensions – all of which are now largely priced in.
