Period 1Q12/3M12
Actual vs.
Expectations
The 1Q12
core net profit of RM16.1m came in within ours and the street’s estimates,
making up 22% and 21% of our FY12E core net profit and that of the consensus
respectively.
Naim also
recorded an exceptional loss of RM3.0m due to fair value changes in the available-for-sale
financial assets of an associate and also forex losses.
Dividends Single
tier dividend of RM0.03.
Key Results Highlights
YoY, the 1Q
revenue declined by 22% as a result of slower recognition from its construction
projects i.e. Complex Islam and Fiji National Highway.
QoQ, the
core profit improved by 204%, mainly due to better property sales, which
improved by 27%, and an improved margin of 16% in its construction division due
to completion of works on higher margin projects. Its 33.6% subsidiary, Dayang,
recorded a strong set of results with a net profit of RM16.0m. This represented
about 38% of Naim’s core net profit of RM16.1m.
Outlook The
current order book stands at c.RM800m, which provides a 2-year earnings
visibility for the group.
Moving
forward, Naim is looking to kick start its new mix property development
projects at Bintulu Old Airport, Kuching and Miri respectively. The total GDV
for these projects is expected to be more than RM800m.
Naim is a
strong contender for the KVMRT project as the group had been shortlisted for station
and depot works under the Bumiputera category.
Change to Forecasts
No changes
to our FY12E forecasts.
Rating
MAINTAIN OUTPERFORM
Maintaining
our OUTPERFORM recommendation as there is an attractive 71% upside to our TP of
RM2.94.
Valuation Maintaining
our Target Price of RM2.94 based on SOP valuation.
Risks Further
delays in existing construction projects.
Escalating
building material prices.
Source: Kenanga
No comments:
Post a Comment