KUALA LUMPUR: Kenanga Research has cut its FY18/19E earnings estimates for White Horse Bhd in light of the slower industry demand for tiles leading to stiffer competition.

The research house said 1Q18 results missed expectations due to lower-than-expected demand in Malaysia and Vietnam.

"1Q18 CNL (core net loss) of RM4.2m missed our/consensus FY18E CNP estimates of RM13m/RM12m due to lower-than-expected tiles demand leading to lower-than-expected revenue," it said in its Thursday report.

It said its core net loss estimate was derived after reversing out unrealised forex gains of RM8mil.

Kenanga Research said it believes prospects for the tiles industry will remain challenging due to rising cost pressures from natural gas and labour, weak tiles demand due to a soft property market and increasing competition from local importers as the ringgit has strenghtened against the US dollar.

It maintained market perform on the counter with a lower target price of RM1.75 from RM1.80 previously.