Mewah

Mewah: Results below consensus. 2Q rev US$1.0b -18.8% yoy +1.6% qoq with net profit at $6.2m +3.8% yoy -24.4% qoq. For 1H2012, sales volume was lower by 2.5% and ASPs were down 12.8% resulting in rev being lower by 12.8% yoy. Co was impacted by falling palm oil prices resulting in buyers remaining cautious and keeping inventories low. Refining margins for Malaysian refiners also remained under pressure with the Msia govt yet to launch any initiatives to address the export duty differential with Indonesia. Co highlights that it usually experiences stronger demand during the 2H of the year due to festive seasons. A interim dividend of 0.3c has been declared. Nomura maintains Neutral with TP$0.45 and is of view that share price is unlikely to fall much further even with this earnings miss as long as US$6-10m quarterly earnings are sustained. DBS downgrades from Hold to Fully Valued with TP down from $0.46 to $0.38.