Conservative Outlook On D&O Green Technologies After Poor Results
Conservative Outlook On D&O Green Technologies After Poor Results
The pace of earnings recovery has also been slower than anticipated, which has prompted a more conservative outlook. As a result, MIDF has revised its earnings estimates for FY24 to FY26 downward by 27.8% to 43.9%, adjusting both revenue and profit margin assumptions. This reflects the company's changed product mix and the weaker-than-expected recovery.
D&O Green Technologies Bhd(D&O) has been downgraded to NEUTRAL from BUY by MIDF Amanah Investment Bank Bhd (MIDF Research), following the semiconductor company's 3QFY24 results. The target price has been revised down to RM2.07 from RM3.85 due to an unfavourable sales mix that led to a significant 69.1% year-on-year decline in earnings to RM6.5 million.
D&O Green Technologies Bhd(D&O)在MIDF Amanah Investment Bank Bhd (MIDF Research)的调研下，由买入评级下调至中立，原因是该半导体公司发布的2024财年第三季度业绩。目标价已从RM3.85下调至RM2.07，原因是销售组合不佳，导致营业收入同比大幅下降69.1%，降至RM650万。
This was in contrast to the resilient performance reported in 3QFY23, which saw earnings of RM18.3 million. For the nine months ending September 2024, D&O's earnings grew by 29.1% year-on-year, totalling RM29.2 million. However, this recovery fell short of both MIDF Research's and consensus expectations, as it accounted for only 33.6% and 38.4% of full-year forecasts respectively.
这与2023财年第三季度报告的稳健表现形成对比，后者的营业收入为RM1830万。截至2024年9月的九个月内，D&O的营业收入同比增长29.1%，总计RM2920万。然而，这一复苏未能达到MIDF Research和市场共识的预期，仅占全年的33.6%和38.4%。
The main issue for D&O during the quarter was the unfavourable shift in its sales mix, which led to a contraction in profit margins, falling to 2.4% from 7.7% in the same period last year. Despite automotive revenue being marginally down by 0.4% year-on-year to RM266.8 million, the lower margin on these sales had a significant impact on earnings. The company's 9MFY24 financial performance, while showing some improvement in automotive revenue—up by 14.5% year-on-year to RM795.5 million—was not enough to meet market expectations.
D&O在该季度面临的主要问题是销售组合的不利变化，导致利润率收缩，从去年同期的7.7%降至2.4%。尽管汽车营业收入同比轻微下降0.4%，降至RM26680万，这些销售的利润率下滑对营业收入产生了重大影响。尽管D&O的2024财年前九个月的财务表现有所改善，汽车营业收入同比增长14.5%，达RM79550万，但仍未能满足市场预期。
The pace of earnings recovery has also been slower than anticipated, which has prompted a more conservative outlook. As a result, MIDF has revised its earnings estimates for FY24 to FY26 downward by 27.8% to 43.9%, adjusting both revenue and profit margin assumptions. This reflects the company's changed product mix and the weaker-than-expected recovery.
营业收入恢复的速度也慢于预期，这促使了更加谨慎的展望。因此，MIDF已将其2024财年至2026财年的营业收入预期下调27.8%至43.9%，同时调整了营业收入和利润率的假设。这反映了公司产品组合的变化以及复苏表现不及预期的情况。
Looking ahead, MIDF Research's revised target price of RM2.07 is based on a lower target price-to-earnings (PER) ratio of 33.4x, which is the company's five-year mean. This adjustment accounts for the near-term challenges faced by the automotive industry, which is expected to continue weighing on D&O's earnings growth. As a result, the downgrade to NEUTRAL comes as MIDF Research expects the near-term decline in global automotive production to cap D&O's earnings potential, despite the long-term prospects of increased LED adoption in vehicles.
展望未来，MIDF Research修订后的目标价为RM2.07，基于较低的市盈率（PER）33.4倍，这一市盈率为公司的五年均值。此次调整考虑到了汽车行业面临的短期挑战，预计将继续对D&O的营业收入增长产生压力。因此，由于MIDF Research预计全球汽车生产的短期下降将限制D&O的盈利潜力，尽管长期来看汽车中LED的使用前景乐观，因此下调至中立。
译文内容由第三方软件翻译。