Period 4Q12/12M12
Actual vs. Expectations Uzma’s 4Q12 net profit of RM6.8m brought its
FY12 net profit to RM22.3m. This was in line with both ours and the consensus
forecasts of RM22.3m each respectively.
Dividends No
dividend was declared as expected.
Key Results Highlights QoQ, 4Q12 net profit grew by 18.6% from RM5.7m
in 3Q12 on the back of expanded margins in both the trading and services
divisions. Both divisions were spurred by a better operational efficiency, especially
on the well-testing services and MECAS (the chemical oilfield division).
YoY, the higher revenue and better operational
efficiency led to a 73.1% growth in the net profit.
For the YTD, the CY12 net earnings soared by 86.1%
from RM12.1m in CY11, which was attributable to more UzmaPres units being deployed
in 2012 (the seventh unit was delivered in Dec), a better performance from
70%-acquired MECAS and the addition of Uzma’s JCE–Setagap Venture Petroleum
(SVP), which contributed RM3.0m for the year.
Outlook We are
optimistic that UZMA will be able to deliver a sterling FY13 full-year results
based on the higher units of UzmaPres delivered and the growth in its wireline
and well-testing divisions.
We understand that the eighth unit of
UzmAPRES, has already been deployed.
We also expect the FY13-14 JCE contribution to
double to RM6.0-8.0m as the business grows.
Change to Forecasts Maintaining our FY13-14E net incomes of RM30.0m-RM33.7m.
Rating Maintain OUTPERFORM
Valuation We are
keeping our target price of RM2.04 unchanged, which is pegged to PER of 9.0x on
our FY13E EPS estimate of 22.7 sen.
Risks Delays
in the deployment of its upcoming UzmAPRES units due to client requests.
A decline in the global crude oil price trend
that will discourage O&G activities.
Source: Kenanga
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