Cost cutting only half done; maintain Sell. TOFF's 2011 results were
weaker than expected with a net loss of RM26m versus our RM14m net loss
forecast. In addition, it seems that TOFF is not through with cost
cutting and is likely to shutdown Tanjung CSI this quarter. Its poor
cashflow and high gearing (1.7x) will necessitate a major cash infusion.
We retain our Sell call with an unchanged TP of RM0.70 after rolling
valuations to 2012, but on an unchanged 0.6x PBV target.
Maybank Research 28 Feb 2012
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