Journey to Wealth
MBM Resources - OUTPERFORM - 25 May 2012
Period 1QFY12/3MFY12
Actual vs. Expectations
Within ours and the consensus expectations.
The 1QFY12 net profit made up 25% and 27% of our estimate and consensus forecast of RM163.4m and RM199.6m, respectively.
Dividends No dividend was declared.
Key Result Highlights
QoQ, 1Q12 earnings improved by 38% with a significant improvement in the PBT margin, which increased from 5.9% to 10.3% mainly driven by the full contribution from Hirotako Holdings.
YoY, the bottom line dipped by 11% as the EBITDA margin dropped from 11% to 10%, mainly due to the credit tightening which affected the sales of Perodua cars as well as due to higher administrative and marketing expenses incurred.
However, this was cushioned by the improved earnings from Federal Auto, which recorded a 54.6% increase in sales mainly due to stronger sales from Volkswagen and Volvo dealerships.
Outlook Mixed.
We expect a slower 1H12 due to the stricter loan requirements. However, the overall sector sentiment should improve towards 2H12 as we expect pent-up demand which should see a better YoY rebound for auto sales.
Change to Forecasts
We are maintaining our earnings for FY12 and FY13.
Rating MAINTAIN OUTPERFORM
We believe in the potential for MBM to grow into a significant autoparts player that would complement its existing manufacturing division and also offer potential operational cost efficiency and cost savings to the entire group.
Valuation We are keeping our target price unchanged at RM3.91 based on an unchanged FY13E PER of 8.0x.
Risks Prolonged effect from the credit tightening measures.
Source: Kenanga
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
More articles on Journey to Wealth
Ekovest: No plan to launch another offer for Iskandar Waterfront City
Created by kiasutrader | Mar 29, 2018
Kenanga Research - On our Portfolio - Parliament dissolution around the corner?
Created by kiasutrader | Mar 25, 2013
Plantation Sector - Proposed accounting standard scrapped OVERWEIGHT
Created by kiasutrader | Mar 25, 2013
Pavilion Reit - Limited upside, earnings upside have been priced in HOLD
Created by kiasutrader | Mar 25, 2013
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
Latest Videos
Apps
Top Articles
1
2
4
save malaysia!
Visa-free travel to China extended for Malaysians to 30 days
5
6
7
Good Articles to Share
8
Good Articles to Share
Four convicted in Spain over homophobic murder that sparked nationwode protests
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
