Period 1Q12
Actual vs. Expectations
Within ours but above the consensus expectations. The 1Q12
net profit of RM21.6m made up 20%
and 24% of
ours and the consensus’ forecasts of RM109.2m and
RM90.8m respectively.
The 1Q12 results were mainly supported by recognition of
property sales, especially for Lot G (office towers) and en bloc sales of its
hotel and strata office (Lot B Q Sentral).
Dividends No dividend was declared for the quarter.
Key Result Highlights
QoQ earnings fell 15% while the revenue declined by 30%.
This was mainly due to the lower
construction revenue by 44% due to delays in its on-going projects, i.e. the
LRT extension project. Nonetheless, for its property division, the EBIT margin
improved from 24% to 27% attributed to en bloc sales and profit
recognised for the ongoing property projects, i.e. Lot G and Lot B, Q Sentral.
YoY revenue increased by 48% as its property revenue jumps
more than threefold to RM165.7m. The margin for the property division has also
improved slightly from 26% to 27% due to the en bloc sales and additional
recurring incomes from its property investment (Lot E KL Sentral Park).
Outlook We believe that MRCB is actively bidding for some
projects under the ETP i.e. buildings and infrastructure projects, worth about
RM500m in the near term. Its current order book stands at RM1.4b for the next
two years.
No updates on EDL at this juncture but we believe that the
government is likely to honour the Concession Agreement (CA), which will indirectly
compensate the concessionaire (EDL).
Forecasts No change to our earnings forecast for FY12
and FY13. We have
factored in only
conservative earnings contribution from EDL vis-à-vis a RM140m revenue
guidance.
Rating Maintain OUTPERFORM
Maintain our OUTPERFORM call given the potential 70% upside
from the market price. Valuation We are keeping our target price unchanged
at RM2.71 based on SOP valuation.
Risks Prolonged negative pre-election
sentiments.
Source: Kenanga
No comments:
Post a Comment