NCB’s FY12 core net income of RM169m (-1% y-o-y) missed our estimate by 11%. The marginal profit drop was attributed to lower port revenue due to a 3% drop in throughput, as well as high start-up cost at its logistics business. As we trim our earnings by 18% and 15% for FY13 and FY14 to factor in the higher costs, our FV dips to RM5.38 from RM5.59, premised on DCF, with 11.5% cost of equity. Maintain BUY given the stock’s steady dividend growth and more than 4% yield.
Down on start-up losses, lower containers handled. NCB’s FY12 core net income totaled RM169m (-1% y-o-y) while revenue inched up 3.4% y-o-y to RM1.02bn. While the topline numbers were 3% above our forecast, NCB’s bottom-line somewhat disappointed, falling short by 11%. Throughput volume declined by 3% in 2012 owing to port congestion caused by the construction of its new container terminal, vs Port Klang’s overall growth of 4.1% in 2012 contributed by Westports. The marginally lower FY12 profit was dragged down by a lower topline (-4% y-o-y) at its high-margin port division, which saw a fall in container throughput and incurred start-up losses due to new business expansion at its logistics division. This was despite the higher revenue growth of 41% y-o-y during the year.