We are ceasing coverage on CI Holdings (CIH), for which our last call was SELL, with RM0.60 FV. The group is still searching for a new core business after disposing off its subsidiary, Permanis, in November 2011. Note that CI Holdings does not have to follow a timeline to acquire a new business as it is not a PN17 or PN16 company.
Flat results. CIH’s 1HFY13 earnings were much lower y-o-y given the high base for comparison in 1HFY12, largely driven by a RM688.4m accounting gain from the sale of its bottling arm, Permanis SB. Vis-à-vis 1QFY13, revenue and profit improved marginally, mainly due to a cut in one-off professional fees incurred in relation to the company’s search for new investment opportunities.
Cease coverage. We are ceasing coverage due to resource reallocation and uncertainties relating to the company’s potential new core business.
Source: OSK
No comments:
Post a Comment