KUALA LUMPUR: Public Investment Bank Bhd (PublicInvest Research) has cut its earnings forecast for QES Group Bhd by 10-12 per cent for financial year 2024 (FY24)-FY26, reflecting slower-than-expected equipment deliveries in the near term.
QES's core earnings of RM14 million for its cumulative nine months in 2024 made up only 63 per cent of PublicInvest Research's full-year expectation.
The results were mainly dragged down by losses in the manufacturing segment and lower deliveries of inspection systems and advanced metrology systems despite an increase in automated handling systems.
As of end-October, the group's order book stood at RM108 million compared to August's RM103 million.
Out of the RM108 million, distribution and manufacturing segments accounted for 82 per cent and 18 per cent, respectively.
"The stronger order book size indicates its capability in securing more contracts, albeit pending on the timing of shipments," it said in a note.
The firm maintained its 'Outperform' call on the stock with a target price of 76 sen.