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Overview
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Business Background Heineken Malaysia Bhd is engaged in the production, packaging, marketing and distribution of beverages, mainly alcoholic.
  perterpan Petron Malaysia Refining and Marketing Berhad - Hit by Margin Compression Author: PublicInvest | Publish date: Fri, 23 Feb 2018, 09:46 AM Petron Malaysia Refining and Marketing Berhad (Petron) recorded a full year FY17 net profit of RM341.8m (+44.8% YoY), excluding exceptional items amounting to RM65.6m owing to compulsory divestment of service stations. The lower-than-expected net profit achievement, meeting only 79% of our and consensus 90% full-year estimates, was the result of margin compression following the faster rise in crude oil prices (cost of goods) against product prices (sales). Operating margin halved to 3.7 % in 4QFY17 against 7.8% for the same period a year ago. The company declared RM0.25 dividend per share for FY17 meanwhile, higher than FY16’s of RM0.22, though in line with our expectation. In the short-term, oil price volatility may persist but in the long run, the outlook on oil prices remains sanguine driven by the re-acceleration of global economy. This will be led by the improving prospects of major economies and hence the pickup in industrialization activities, which in turn will underpin the recovery of demand for oil. We remain positive on the prospects of Petron and reaffirm our Outperform target on Petron with a target price of RM13.62, suggesting a potential upside of 13.5%. Higher 4QFY17 revenue (+23.6% YoY) driven by higher global oil prices and volume sold. Global oil prices in 4QFY17, using Brent prices as a benchmark, recorded a 24.4% YoY jump to USD61 per barrel. Petron also registered higher sales volume of 9.1 million (+9.6% YoY) barrels for the quarter, owing to better economic conditions and steady increase in the number of petrol stations. Net profit for 4QFY17 dropped 8.6% YoY to RM101.8m despite the 23.6% increase in revenue. Operating margins took a hit as it dipped to 3.7% in the quarter (4QFY16: 7.8%), no thanks to the faster increase in crude oil prices compared to product prices, leading to compressions. Outlook. Despite the steady rise in oil prices, the company remains vigilant and cognizant of the persistent volatilities resulting from continued imbalances in oil supply and demand. We believe the company will continue to improve their efficiency as a natural defense against this however. Additionally, we foresee the company will continue to leverage on firmer demand as a result of steady economic conditions which underpins their drive to add more petrol stations in the near future. Source: PublicInvest Research - 23 Feb 2018 23/02/2018 10:07  bluebiznet Both is beverage for suicide purpose. One is fast way to sleep forever and one is suicide gradually 23/02/2018 22:21 yuanlong57 Hah, same problem over here. In Carlsberg counter, forum members discussed oil counters. 28/02/2018 01:04 bluebiznet Panic buy om carlsberg today yet heim declare 50sen dividend. Wrongly target ah LOL 11/04/2018 20:12 Bull mkt expansion limited as number of drinkers low.. dont think share price can up lagi 25/04/2018 14:49 luckycharm ang moh company they dont like issue cw 1 lah...their company is fundemental and for those who like to keep long term de... 23/05/2018 15:32 Aries NVM.After holding HEIM for so many years, my HEIM is free. As long as there is consistent dividend payout, I am happy. 29/08/2018 10:33 cheated_ Many ctrs after paying more dividend than earned(EPS) will lead to worse QR next qtr if everything remain constant(biz outlook). 01/09/2018 07:15  |
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