THP’s FY17 revenue increased 23% yoy to RM689.2m contributed by higher sales volume and higher ASP realized in palm products. Core PBT increased by 139% to RM76.9m mainly due to 1) higher volumes and ASP of palm products; 2) lower estates unit cost of production by 7% yoy to RM240/MT; 3) lower CPO unit cost of production to RM1,570/MT vs. RM1,579/MT in FY16; and 4) an extraordinary gain of RM112.58m from the disposal of shares in subsidiary company which was recognized in 4Q16.
On qoq basis, PBT increased 52% resulted from higher ASP realized, lower finance costs and higher contribution from other income. On the other hand, lower yoy results was due to lower ASP realized of palm products, lower contribution from other income, higher administrative expenses and an extraordinary gain on disposal as mentioned above.
THP’s has proposed 2sen final single-tier dividend for FY17, bring the total dividend for FY17 of 36sen (FY16: 0sen). Based on current market price, this translate into DY of 3.7x.
We keep our FY18 and FY19 earnings forecast unchanged. We believe THP medium-to long term prospect remains promising given its young age profile of 10yrs can provide visible revenue and earnings growth catalyst moving forward. We have NON-RATED recommendation on the stock.
Source: BIMB Securities Research - 1 Mar 2018
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Created by kltrader | Aug 12, 2024