Friday, 1 March 2013

Johore Tin - Sweeter Numbers In Store


Johortin’s FY12 earnings were above our forecast. Revenue and profit expanded on the  back  of  stronger  performance  of  its  F&B  division.  Margins  trended  higher  on favorable  commodity  prices  and  opex  savings.  By  bumping  up  our  FY13  numbers by 5.6%, our FV is revised to RM2.60 based on SOP valuation. Maintain BUY.
Outperforming  our  numbers.  Johortin’s  FY12  revenue  came  in  at  RM246.4m  vs RM134.4m in FY11, a whopping y-o-y growth of 83.6%. A 480% y-o-y topline growth from its  F&B  segment  more  than  offset  the  fall  in  revenue  (-22.6%  y-o-y)  from  its  tin
manufacturing  division.  Net  profit  more  than  doubled  y-o-y  to  RM23.1m  from  RM11m, mainly underpinned by the solid earnings growth at its F&B operation. PBT from F&B was stunningly  high,  at  334%  y-o-y,  due  to  the  only  2  months  contribution  from  the  newly acquired  subsidiary,  Able  Dairies  in  FY11.  Tin  manufacturing  also  recorded  decent  PBT growth of 13.2% on the back of lower operating and finance cost. Q-o-q, revenue was up by 1.9% but profit sank 17.9% due to an increase in operating and administrative costs.
Source: OSK

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