Period 1Q12
Actual vs. Expectations
1Q12 net profit of RM2.1m came in below our estimates,
making up 14% of our FY12E net profit as a result of further delays of LRT extension
works in 1Q12.
Dividends No dividend was declared during the
quarter.
Key Result Highlights
YoY, 1Q12 revenue improved by 4% from RM289m to RM302m as
its polyol manufacturing division and quarry division sales has increased by
44% and 18%, respectively. Group’s pre-tax profit also increased by 29% with an
improved margin of 2% (previously 1%) due to growth on its polyol division of
44% and improvement of 5.2ppt on its pretax margin from -1.9% to 3.3%.
QoQ, its net profit has improved significantly from a loss
of RM1.5m to net profit of RM2.1. This is due to higher tax rate in the
preceding quarter (4Q11-112%) as compared to 1Q12 tax rate at 40%.
Outlook Its current order book now stands at RM2.3b which
will last up till FY15.
Moving forward, Bina Puri expects to launch a few property
development projects with a GDV more than RM1.5b in Klang Valley, Johor Bahru, and
Kota Kinabalu. To recap, Bina Puri acquired a piece of land measuring approx.
1.3 acres of land located at Jalan Tallala, Section 69, Kuala Lumpur for
residential property development ie: 2 blocks of 36 storey (458 units) service
apartments.
Change to Forecasts
No changes to our FY12-13E earnings as we noted that its
KLIA2 construction work progress has reached slightly more than 50% completion.
We expected the project will materially impact its earnings from 2Q12 onwards
as accord to S curve for construction works. The project is slated for
completion by mid to august 2013.
Rating Maintain OUTPEFORM
TP of RM1.24 implies 30% upside to current share price which
should be buoyed by new contract flows in the near future.
Valuation Maintain TP of RM1.24 with an unchanged 10x PER
on its FY12E EPS of 12.4sen.
Risks Escalating building material prices.
Source: Kenanga
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