Litrak’s 9MFY13 net profit of RM96.9m was in line with both our and consensusexpectations, at 73.2% and 74.3% of the respective full year estimates. A second interim DPS of 7.0 sen was declared, bringing its YTD payout to 17.0 sen. That said, we are ceasing coverage on the stock due to an internal resource reallocation. Our last recommendation was BUY, with a FV of MYR4.44.
Decent YTD numbers. Litrak registered 9MFY13 revenue RM277.8m, up 3.0% y-o-y, on higher traffic volume. EBIT, however, shed 4.6% y-o-y to RM204.6m on higher depreciation and amortisation expenses recognized following the revised toll revenue projections on LDP (Lebuhraya Damansara-Puchong) in 4QFY12 and the completion of major upgrade projects along the said highway. All in, net income came in 5.0% lower y-o-y, but within our estimates, at RM96.9m as the higher effective tax rate was partly offset by lower interest expenses incurred as well as narrower losses at its 50%-owned SPRINT operations. On a quarterly basis, 3QFY13 core earnings of RM30.4m was weaker on both q-o-q and y-o-y basis owing to the higher depreciation and amortisation expenses of RM13.9m (+45.9% y-o-y; +6.2% q-o-q) booked in during the quarter.
YTD DPS at 17.0 sen. On a side note, management declared a second interim DPS of 7.0 sen, bringing its YTD payout to 17.0 sen. While this translates into a decent yield of 3.9% YTD, it fell slightly short of our previous expectation of 20.0 sen for FY13f. Note that Litrak typically announces its dividends in 1Q and 3Q of its FYs.
Ceasing coverage. That said, we are ceasing coverage on the company due to internal resource reallocation. Our last recommendation on the stock was BUY, with an SOP-based FV of MYR4.44.
Decent YTD numbers. Litrak registered 9MFY13 revenue RM277.8m, up 3.0% y-o-y, on higher traffic volume. EBIT, however, shed 4.6% y-o-y to RM204.6m on higher depreciation and amortisation expenses recognized following the revised toll revenue projections on LDP (Lebuhraya Damansara-Puchong) in 4QFY12 and the completion of major upgrade projects along the said highway. All in, net income came in 5.0% lower y-o-y, but within our estimates, at RM96.9m as the higher effective tax rate was partly offset by lower interest expenses incurred as well as narrower losses at its 50%-owned SPRINT operations. On a quarterly basis, 3QFY13 core earnings of RM30.4m was weaker on both q-o-q and y-o-y basis owing to the higher depreciation and amortisation expenses of RM13.9m (+45.9% y-o-y; +6.2% q-o-q) booked in during the quarter.
YTD DPS at 17.0 sen. On a side note, management declared a second interim DPS of 7.0 sen, bringing its YTD payout to 17.0 sen. While this translates into a decent yield of 3.9% YTD, it fell slightly short of our previous expectation of 20.0 sen for FY13f. Note that Litrak typically announces its dividends in 1Q and 3Q of its FYs.
Ceasing coverage. That said, we are ceasing coverage on the company due to internal resource reallocation. Our last recommendation on the stock was BUY, with an SOP-based FV of MYR4.44.
Source: OSK
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