Tuesday 29 May 2012

Eastern & Oriental - Ceased Coverage - 29 May 2012


Period   4Q12

Actual vs. Expectations
FY12 reported earnings of RM124m exceeded expectations by 19% of the street’s FY12E RM107m and 36% of our RM91m. Results were higher due to better than expected cost control effort and higher billings and sales. Another reason was the higher than expected fair value gains on Tesco@Seri Tanjung Pinang (STP) sale of RM65m vs. the previous guidance of RM58m. 

Dividends  Proposed a first and final GDPS of 4.25 sen (3.0% yield), which exceeded our initial estimate of 3.2 sen. 

Key Results Highlights
YoY, FY12 earnings grew 74% largely due to the RM65m fair value gain arising from Tesco@STP. Furthermore, FY12 sales increased by 31% to RM787m due to Quayside Seafront Resort Condo @ STP and JCE contributions from St Mary. 

Change to Forecasts
No changes to FY13E estimates. 

  CEASING COVERAGE
Although the stock has exceeded our expectations, we are ceasing coverage on the stock (coverage since 2007) as we are rationalising our coverage universe. Our last TP for the stock was at RM1.49.

Source: Kenanga


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