=MARKET BUZZ: Malaysia's JHM Consolidated Down 5.8% On Earnings Woes
KUALA LUMPUR (Jun 19) -- JHM Consolidated down 5.8% at MYR2.45 on profit-taking after 1-for-1 bonus issue and on concerns over earnings sustainability. "Company's earnings growth is unlikely to sustain due to high competition in automotive LED lighting. They are also yet to get contribution from the aerospace industry despite getting required license," says dealer at local brokerage. Company went ex-bonus last Thursday, while new shares to be listed tomorrow. "As shares have been the top performer in Bursa Malaysia this year, it's better to exit now as valuations are extremely high and there's a risk that company may not be able to deliver expected profit," he adds. Shares have more than tripled year-to-date on strong turnaround and diversification story.
- By Chong Sin Hao; Dave.Chong@nikkeinewsrise.com; +60320267363
- Edited by Abhijit Basu
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