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.

To continue reading,

Sign in to access this Premium article.

Subscription entitlements:

Less than $9 per month
3 Simultaneous logins across all devices
Unlimited access to latest and premium articles
Bonus unlimited access to online articles and virtual newspaper on The Edge Malaysia (single login)

Related Stories

Stay updated with Singapore corporate news stories for FREE

Follow our Telegram | Facebook