Highlights

KL Trader Investment Research Articles

Author: kltrader   |   Latest post: Wed, 22 Jan 2020, 1:10 PM

 

Plenitude - 1Q20 Below Expectation, Challenging Outlook Remains

Author:   |    Publish date:


1Q20 Revenue improve marginally but earnings wiped out by higher expenses and lower investment revenue

Plenitude 1Q20 reported revenue of RM45.8m (yoy:+7.3%, qoq:-49.1%) and PATMI of RM1.1m (yoy:-85.9%. qoq:-93.8%). While revenue largely in line with our estimate, earnings disappoint due to lower operating profit margin and investment revenue.

Property weak sentiment continue

Property division revenue of RM25.5m is within our expectation however operating profit fell drastically to RM6.5m (yoy-11.6%, qoq:-80.9%), operating margin fell substantially to 25.6% (1Q19:30.7%, 4Q19:45.4%). In view of the weak sentiment in property industry, the Group will continue to adopt cautious approach in new property launches and continue to intensify its marketing and sales initiatives to promote its existing properties.

Hotel operations division remain challenging

Hotel operations registered better revenue of RM20.3m (yoy:+8.6%, qoq:+39.0%) as newly-acquired hotel in Seoul contributed RM4.2 million of revenue for the current quarter while revenue from hotel operations in Malaysia registered a drop of RM2.6 million. The lower revenue in Malaysia were partly due to haze spell from Aug’19 to Oct’19 and on-going renovation at Novotel KL. Malaysia hotel yield remain depress in an increasingly competitive market.

Maintain BUY with unchanged TP of RM2.77

Despite the challenging outlook, We continue favor Plenitude for its strong balance sheet, consistent dividend, strategic landbank in mature township and recurring income from its hotel operations. We maintained BUY recommendation with unchanged target price of RM2.77 based on P/B ratio of 0.66x of our estimate FY20F NTA.

Source: Mercury Research - 2 Dec 2019

Share this
Labels: PLENITU

Related Stocks

Chart Stock Name Last Change Volume 
PLENITU 1.29 0.00 (0.00%)

  Be the first to like this.
 


 

308  374  520  783 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 PWRWELL 0.29+0.005 
 MTOUCHE-WC 0.01-0.015 
 HSI-H8K 0.195+0.06 
 DGB 0.13-0.005 
 MTOUCHE 0.17-0.005 
 HSI-C7K 0.275-0.12 
 VC 0.075-0.01 
 SAPNRG 0.27+0.005 
 XDL-WD 0.015-0.005 
 XDL 0.16-0.005 

FEATURED POSTS

1. Leveraged & Inverse ETF CMS

TOP ARTICLES

1. Bank Negara MPC cuts OPR by 25bp to 2.75% save malaysia!!!
2. 【科技成长股】INARI AMERTRON BERHAD – One of EMS Industries Benefit from Cadence and Broadcom Collaboration. 【科技成长股】INARI AMERTRON BERHAD – Benefit from Cadence and Broadcom Collaboration. What Next?
3. China will keep buying our palm oil, Darell Leiking says save malaysia!!!
4. Dayang: Only fools will sell - Koon Yew Yin Koon Yew Yin's Blog
5. Notion Vtec Berhad – PART I - by Davidtslim: A high precision metal parts Specialist who rides on Electronic Manufacturing Services (“EMS”) Davidtslim sharing
6. 4大手套股发“灾难财” 星洲日報/投資致富‧企業故事
7. Top Glove and Supermax: Potential Beneficiaries Amid Coronavirus Outbreak KL Trader Investment Research Articles
8. 不是叫你买股 - NOTION篇,火后凤凰? 作者 JC JC
Partners & Brokers