BofAML cuts MMC (00975) to "neutral" & HK$3.4
[ET Net News Agency, 21 March 2013] BofA Merrill Lynch cut its target price for Mongolia Mining Corporation (MMC)(00975) to HK$3.4 from HK$5, and downgraded the stock to "neutral" from "buy".
The research house cut its 2013 earnings by 29% on lower clean coal volume guidance (down 7%), a lower clean coal ASP (down 3%) due to a weaker coking coal price outlook, and a slightly higher unit cost (up 3%) on higher-than-expected transportation costs in 2012.
According to management, the hard coking coal ASP approximated US$107/ton YTD, much lower than the average of US$139 in 1H2012. In view of uncertainties from property tightening and potential steel mill suspension on environmental protection measures in Tangshan, BofAML is less optimistic on coking coal prices for the rest of the year amid abundant supply and rising inventory.
The research house cut its 2013 earnings by 29% on lower clean coal volume guidance (down 7%), a lower clean coal ASP (down 3%) due to a weaker coking coal price outlook, and a slightly higher unit cost (up 3%) on higher-than-expected transportation costs in 2012.
According to management, the hard coking coal ASP approximated US$107/ton YTD, much lower than the average of US$139 in 1H2012. In view of uncertainties from property tightening and potential steel mill suspension on environmental protection measures in Tangshan, BofAML is less optimistic on coking coal prices for the rest of the year amid abundant supply and rising inventory.
Comments
Post a Comment