S&P Keeps Marco As Strong Sell, 14 Sen Target

S&P Equity Research keeps Marco as Strong Sell, with 14 sen target after company posts in-line 1Q net profit of MYR0.8 million (vs MYR0.68 million in 1Q 2006); thus keeps 2007 net profit forecast at MYR3.2 million, 2008 forecast at MYR3.3 million. "Given the absence of other bottom-line contributors (such as property development), earnings growth from its core timepiece distribution business will be unexciting," S&P says; this can't justify estimated current year PER of about 40X, suggests stretched valuation. Stock down 2.7% at 18 sen in moderate trade.