KUALA LUMPUR: Dutch Lady Milk Industries Bhd’s stocks emerged as the top loser on Bursa Malaysia after posting a net loss in the fourth quarter of the financial year 2022 (4Q FY2022).
At 10.15 am, the counter gave up RM1.02 to RM29.08 from Friday’s close of RM30.10 with 10,100 shares traded.
The dairy product maker on Friday reported a net loss of RM20.23 million in 4Q FY2022 from a net profit of RM183.46 million in 4Q FY2021 following the RM17.9 million one-off restructuring cost and RM25 million related to the 2018-2021 bilateral advanced pricing arrangement between the authorities of Malaysia and the Netherlands.
Revenue, however, was higher at RM361.69 million from RM300.40 previously.
For the full FY2022, Dutch Lady posted a sharply lower net profit of RM46.27 million against RM248 million year-on-year.
Revenue rose to RM1.34 billion from RM1.13 billion.
Kenanga Research said it has slashed FY2023 earnings estimates for Dutch Lady by nine per cent and trimmed its target price for the counter by the same quantum to RM29.78 from RM32.60 per share.
“We cut the earnings forecasts on account of high-cost inventory in the books. The situation should improve in FY2024 in the absence of high-cost inventory and assuming food commodity prices stabilise,” it said in a note.
Kenanga Research, however, maintained market perform call on Dutch lady. – BERNAMA
