AsiaPhos yet to hit rocky territory despite 3Q net loss: NRA Capital

SINGAPORE (Nov 16): NRA Capital is maintaining its “overweight” rating on AsiaPhos with a fair value of 19.5 cents, even after the mineral resources company reported $0.55 million in net losses for 3Q16 on lower revenue.

“Our key takeaway from this set of results is that it will likely take more time for AsiaPhos to achieve stable growth and strengthen its balance sheet. We maintain our positive rating as we believe that the company’s phosphate mine and processing plant hold longer term upside,” says analyst Liu Jinshu in a Tuesday report.

Liu believes the rainy weather in late 2Q – which lead to a cease in mining operations for AsiaPhos until late Oct – was largely to blame for the poorer than expected results. Hence, NRA Capital has repositioned the stock to “average-return / moderate risk” from its previous “high-return / moderate risk” evaluation.

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