Bursa Malaysia Stock Watch

HSL (BUY) - FY11 another record year

kltrader
Publish date: Wed, 29 Feb 2012, 04:06 PM
kltrader
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HSL (BUY)

FY11 another record year
  • HSL posted another record earnings as FY11 earnings grew by 19% toRM87.3m (15.8 sen/share) beating streets' estimates slightly but 3% below ourforecast of RM90m.
  • Net dividend of 1.8 sen/share declared. Hence, total FY11 dividendsdeclared was 2.7 sen/share. Also, 1-for-50 treasury share distributionannounced which works out to additional 3.3 sen/share at current share price ofRM1.65.
  • Overall, the HSL has an outstanding order book of ~RM1.1bn, translatingto ~2.0x FY11's construction revenue and ~1.1x order book-to-market cap ratio.
  • With the improved newsflow for the construction sector and potential inaward of SCORE projects picking up, we maintain our BUY call on HSL with a TPof RM2.21.

Source: HLIB Research 29 Feb 2012
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