Highlights

TA Sector Research

Author: sectoranalyst   |   Latest post: Fri, 7 Feb 2020, 9:36 AM

 

Pesona Metro Holdings Berhad - Construction Margin Improves Further

Author:   |    Publish date:


Review

  • PESONA’s 9M19 net profit of RM15.1mn came in within our expectation, accounting for 68.8% of our full-year forecast.
  • 9M19 net profit surged 32.3% to RM15.1mn despite overall revenue was 3.0% lower at RM438.2mn. The better earnings came mainly from higher construction operating margin which improved by 1.3%-pts to 4.9%.
  • QoQ, net profit dropped 18.9% to RM5.3mn, in line with a 17.8% decline in the quarterly revenue to RM142.0mn. The immediate preceding quarter was boosted by higher contribution from the i-City mall project. While the overall net profit was lower on sequential basis, the construction operating margin improved further to 5.4%, the highest since 4Q17.

Impact

  • Maintain our FY19 to FY21 earnings forecasts.

Outlook

  • PESONA’s outstanding order book eased from RM1.9bn a quarter ago to RM1.7bn, which translates into 3.1xFY18 construction revenue. This is sufficient to provide earnings visibility to the group for the next 2 years.
  • The student hostel concession is expected to provide a stable recurring income stream to the group.

Valuation

  • No change to our target price of RM0.31, based on SOP valuation. Maintain Buy

Source: TA Research - 29 Nov 2019

Share this
Labels: PESONA

Related Stocks

Chart Stock Name Last Change Volume 
PESONA 0.205 0.00 (0.00%) 333,000 

  Be the first to like this.
 


 

589  114  491  1098 

ActiveGainersLosers
Top 10 Active Counters
 NameLastChange 
 AVI 0.16+0.005 
 HSI-C7V 0.2550.00 
 MTOUCHE 0.17+0.01 
 MYEG 1.23+0.01 
 ICON 0.1050.00 
 TIGER 0.0550.00 
 HSI-H8W 0.15-0.01 
 XOX 0.055+0.005 
 PWRWELL 0.37+0.015 
 SAPNRG 0.225-0.005 
Partners & Brokers