Kenanga cuts Bina Puri target price

Kenanga Research cut its target price for Malaysian builder Bina Puri Holdings Bhd to RM0.40 from RM0.48, citing potential dilution from an upcoming private placement by the company.


Kenanga said the private placement was “inevitable” due to Bina Puri’s worsening cash flows, which were the result of a year-long delay on an infrastructure project.

“The delay has negatively impacted the company’s cash position, because of the mismatch between the project’s revenue recognition and its recurring fixed cost,” said Kenanga.

The brokerage maintained an ’underperform’ call for the stock, which was down 0.66 per cent at RM0.75, its lowest since April 2010, at 0923 am (0123 GMT).

- Reuters