Period 1Q12
Actual vs. Expectations
1Q12 revenue of RM256.6m accounted for 21.5% of the
consensus’ full year estimate of RM1195.7m. However, the bottom line continued to
see red ink with a loss of RM13.5m vs. the street’s full year net profit
forecast of RM52.4m.
Dividends No
dividend was announced during the quarter.
Key Result Highlights
YoY, the revenue was lower by 12% to RM256.6m due to lower
contribution from the Asia (-12%) and Europe (-28%) segments. The bottom line
fared worst, recording a net loss of RM13.7m as compared to a net profit of
RM5.4m a year ago. The group’s 1Q12 net loss was mainly caused by a one-time
retrenchment cost of RM5.7m (arising from an efficiency/redundancy exercise at
PT Unisem) and higher depreciation charges.
QoQ, the revenue was also lower by 6% while the loss before
tax (LBT) widened to RM16.2m vs. RM5.3m
in 4Q11. The increase in the LBT during the quarter was mainly due to lower
sales revenue and retrenchment costs.
Outlook
Getting better. The industry is expected to recover
in 2H12 due to a higher consumer demand for electronic devices. Management has earlier indicated that its
1Q12 earnings will continue to be in the red albeit hitting the bottom of the
current semiconductor cycle. The group is expecting to see improved results
from 2Q12 onwards based on our understanding.
More detail updates on the company outlook will be provided
by the company during a result briefing today.
Change to Forecasts
1Q12 net loss of RM13m was far below the consensus estimate
of a RM17m net profit in 1Q and full year profit forecast of RM52.0m. Hence, we
believe market is likely to revise down its FY12 earnings estimate for Unisem
post results.
Rating NOT RATED as we have yet to initiate coverage
on the stock
Valuation Consensus TP is at RM1.47, implying a FY12 PER
of 17.8x.
Risks
Foreign currency exchange rate.
Industry recovery may falter halfway.
Source: Kenanga
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