Actual vs. Expectations The
group’s FY12 reported net loss of RM32.3m came in below expectations, mainly
dragged down by the impairment losses on assets, a provision for one-time write-off
on inventory and retrenchment costs.
Dividends A
final tax-exempt dividend of 2.0 sen per share was declared.
Key Result Highlights
YoY, the FY12 revenue dropped by 6% as the robust
growth in the USA segment (25%) was offset by lower revenues in the Asia (-6%)
and Europe (-40%) segments. FY12 EBIT was dragged to the red as a result of a
full-year provision of RM20.8m for the impairment
of assets (RM13.4m) coupled with a onetime write-off in inventories (RM5.1m),
capitalised expenditure (RM1.3m) and receivables (RM0.9m) due to the
discontinuation of certain low margin
and unprofitable product lines.
QoQ, its 4QFY12
revenue growth remained flattish as robust growth from the USA segment (+77%)
was offset by lower revenue in the Asia segment (-28.0%) and a flat revenue
growth in its Europe segment (-1.9%). 4QFY12 EBIT was in the red also, dragged
by the provision of RM20.8 coupled with retrenchment costs from the efficiency
exercises carried out by the group.
Outlook According to Semiconductor Industry
Association, global semiconductor sales continued its growth momentum in Dec
(+3.8% YoY), narrowing the negative gap from -3.9% to -2.7% on a YTD
basis.
While we are
cautiously optimistic on the sector recovery, we believe that the outlook for
local tech companies could continue to be overshadowed by a sluggish PC demand
coupled with the prolonged global economic uncertainties.
Having said that, we
believe that any lights at the end of the tunnel could only be seen in 2HCY13.
Change to Forecasts We
have trimmed our FY13 sales forecast by 1.4% to RM1.14b for fine-tuning
purposes. We are also introducing our FY14 earnings estimates.
We have also reduced
our EBITDA margin assumption from 18.4% previously to 15.9% to account for the higher
labour cost arising from the minimum wage policy implementation. All in all,
our FY13 NP estimate has been revised down to RM17.7m from RM28.0m.
Rating Maintain MARKET PERFORM
Valuation We
are maintaining our TP of RM0.99, which implies a 0.65x FY13 PBV (close to -1SD
below its historical 3-year mean).
Risks Foreign currency exchange rate.
The industry’s
recovery may falter halfway.
Source: Kenanga
No comments:
Post a Comment