CGS-CIMB

ISDN Holdings Ltd
Impacted by China’s Covid-19 lockdown

■ 1Q22 revenue/net profit were 10.0% below our expectations as revenue was
impacted by the Covid-19 lockdowns in China.

■ Management guided that current order book remains strong, driven by
continued robust demand for industrial automation.

■ We cut our FY22-24F estimates to reflect Covid-19 lockdown impact and the
difficult operating environment. TP reduced as we lower target P/E multiple.

Read More ... 

Cahya Mata Sarawak (CMS MK)
SSA inked for OM Sarawak sale

Tactical BUY maintained
CMS had, on 14 Jun, entered into a conditional share sale agreement
(SSA) with OM Materials (S) for the disposal of its 25%-stake in both OM
Materials (Sarawak) and OM Materials (Samalaju).

The entire disposal proceed has been earmarked for future acquisitions/investments, capex and working capital.

We make no change to our earnings forecasts and MYR1.27 TP (on 7x FY22E PER; -1SD of mean) pending deal completion.

Read More ...