Period 4Q12/12M12
Actual vs. Expectations FY12 results came in within our expectations
but short of the consensus estimate. The FY12 core net profit of RM262m came in
at 100% and 81% of ours and the consensus estimates, respectively. The main key
drivers for the results were: (1) the significant contribution from its
associates and JV companies, especially from the Gamuda-MMC JV and (2) a higher
tariff for its Johor Port arisng from a tariff revision in August 2011.
Dividends As
expected, no dividend was declared.
Key Result Highlights The FY12 core net profit of RM262m was down by
18% due to the absence of a c.11% contribution from Gas Malaysia (“GMB”) and a
lower margin due to the new tariff hike for the gas intake from Petronas.
During the year, MMC also recorded c.RM660m in exceptional items, which mainly
came from the gain from disposal of GMB. For the YTD, its Gamuda-MMC JV
contributed c.RM51m to its pre-tax level.
QoQ, the revenue dipped by 10% due to lower contributions
from GMB and Malakoff. The energy charges were down during the quarter, in line
with the lower average coal price. However, the core net profit was up by 31%
as the contribution from its associates and JV companiess increase more than two-fold
from RM25m to RM103m.
YoY, due to GMB’s listing; the group’s revenue
and core net profit were down by 30% and 62% respectively. This was due to the
lower contribution from GMB and also due to the margin contraction following
the upward revision for natural gas tariff.
Outlook We
believe that MMC will be one of the counters to be in focus post-election. MMC
could be looking for new asset replacements after the listing of GMB and its
upcoming Malakoff listing.
Change to Forecasts No
change to our forecast.
Rating Maintain
MARKET PERFORM
Maintaining our MARKET PERFORM due to the risk/uncertainty
of General Election.
Valuation We
maintain our fair value at RM2.80 based on SOP valuation.
Risks Delays
in the construction of MRT works and the general election risk.
Source: Kenanga
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