- BiPort posted weaker sequential earnings (-20% QoQ) for
3QFY12 at RM31mil. This takes its cumulative 9MFY12 earnings to RM114mil which
came below expectations, accounting for 60% and 67% of our and consensus
FY12F’s estimates. The underperformance was mainly due to high tax credit in
the preceding quarter.
- Even so, at the pre-tax level – to disregard the effect of
the taxation charges – our numbers still came up short as a result of
higher-than-expected maintenance costs.
- Having said that, there was also a slight drop in revenue
(-2% QoQ) following a major shutdown at the LNG plant and weaker vessel calls –
22 calls – in July, although the final two months of the quarter compensated
for this shortfall.
- On the flipside, the interim facilities for Samalaju Port
– with an annual handling capacity of four million tonnes – will be ready for
operations by 1QFY13F in time to accommodate the new plants in SCORE that will
start operating next year. To recap, this interim port would comprise a ro-ro
ramp and two barge berths of 160m in length, each with a depth of 7m.
- To cost RM1.8bil, the new port will be able to handle 18
million tonnes of cargo per year and this could be raised to 30 million tonnes
annually, if necessary. The management expects the port to be fully operational
by 1Q2016.
- There is also further upside from the new LNG train which
will take its total capacity to 27.6mtpa. We estimate the additional 3.6mtpa
throughput to bring additional RM35mil in revenue – via berth charges – and
circa RM10mil in pre-tax profit to BiPort. The new train will be expected to
operate in 4Q2015.
- We reaffirm our BUY rating on BiPort, with our fair value
kept unchanged at RM8.40/share based on our DCF valuation. Nonetheless, we are
putting our numbers under review pending a meeting with the management.
Source: AmeSecurities
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