Period 4Q12
Actual vs. Expectations
FY12 net profit of RM194m (or USD63m) came in 9.6% above our
expectation but in line with the consensus’ estimate. The main culprits between
ours and the actual number were 1) lower than expected distribution and
administration costs and 2) difference between our in-house USD to RM
assumption against the company (RM3.05 vs. RM3.0645).
Dividends Declared US1.448 cents (or RM0.04575 sen) second
interim dividend, bringing the full-year dividends to US2.65 cents (or RM0.083
sen) and translating into a dividend payout ratio of 70.7%.
Note that the group’s FY12 dividend payout ratio was higher
than its dividend policy, which is set to distribute 30%-60% PAT to
shareholders.
Key Result Highlights
YoY, revenue rose by 6% to RM1.45b due mainly to the
increase in advertising revenue and travel segment’s turnover. Despite
recording a moderate growth in its
turnover, the group’s NP has grown by 15% to RM194m as a result of lower
fixed and operating costs.
QoQ, revenue was reduced by 15% to RM318m, no thanks
to the drop
in tour revenue
as well as a seasonally slow period for advertising.
Thus, leading its NP to drop 19% QoQ.
Outlook Cautiously optimistic. We are expecting the
adex sentiment to improve from 2Q12 onwards driven by scheduled major sport
events and a potential General Election.
Change to Forecasts
We have increased our FY13 NP forecast by 6.5% to RM188m
after lowering the distribution and administration costs. Our FY14 NP forecast, however, remains
unchanged.
Rating Maintain OUTPERFORM
Valuation We have raised our TP to RM1.36 (from RM1.30
previously) after rolling over our base year to FY13 with a targeted PER of
12.5x (-1 SD below its mean).
Risks CY12 gross adex growth coming in below our expectation
of RM11.9b (+11.1% YoY).
Source: Kenanga
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