Multi Sports FY12 results were well within our forecast. Revenue and earnings moderated by 10.7% and 22.9% y-o-y respectively due to lower orders and higher production costs. We are ceasing coverage on Multi Sports due to internal resource reallocation.
Within expectation. Multi Sports’ FY12 revenue and earnings slipped by10.7% and 22.9% y-o-y respectively. Production capacity stood at 45m pairs p.a., with a utilization rate of 79.4%. Sales for TPR, RB, MD1 and MD2 dropped by 34.3%, 14.3% 15.7% and 7.1% respectively. Margins were lower, largely thanks to higher production cost arising from rises in labor and overhead costs. Q-o-q, revenue grew by 4% while net profit was lower by 6.2%. The lower profitability was partially due to losses from the disposal of property, plant and equipment and the preliminary start-up expenses incurred by a newly-incorporated subsidiary in the current quarter.
Ceasing coverage. We are discontinuing coverage on the stock due to internal resource allocation. We expect the group’s margins, which eased y-o-y, to remain flat in the near future amid higher labour and overhead costs.
Within expectation. Multi Sports’ FY12 revenue and earnings slipped by10.7% and 22.9% y-o-y respectively. Production capacity stood at 45m pairs p.a., with a utilization rate of 79.4%. Sales for TPR, RB, MD1 and MD2 dropped by 34.3%, 14.3% 15.7% and 7.1% respectively. Margins were lower, largely thanks to higher production cost arising from rises in labor and overhead costs. Q-o-q, revenue grew by 4% while net profit was lower by 6.2%. The lower profitability was partially due to losses from the disposal of property, plant and equipment and the preliminary start-up expenses incurred by a newly-incorporated subsidiary in the current quarter.
Ceasing coverage. We are discontinuing coverage on the stock due to internal resource allocation. We expect the group’s margins, which eased y-o-y, to remain flat in the near future amid higher labour and overhead costs.
Source: OSK
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