Multi-Purpose Holdings - A Yield Play

Multi-Purpose  Holdings  (MPHB)  registered  FY12  net  profit  of  RM343.8m.  Stripping off  some  one-off  items  of  RM45.0m  incurred  during  the  year,  its  core  earnings  of RM298.8m fell short of both consensus and our expectations at 82.2% and 92.9% of the respective full year estimates. The company declared a final DPS of 3.5 sen less income  tax  and  a  1.5  sen  single-tier  DPS.  Maintain  BUY  with  our  SOP-based  FV reduced to RM3.88.  

Subpar  numbers. MPHB’s FY12 revenue was 4.1% lower y-o-y at RM3.41bn as a result of higher prize payout ratio for its gaming division during the period. By the same token, its core earnings shed 1.4% y-o-y to RM298.8m, falling short of both our and street estimates. On  a  quarterly  basis,  4QFY12  numbers  are  weaker  across  the  board,  with  both  revenue and core earnings lower on both y-o-y and q-o-q. 

Source: OSK