Journey to Wealth
MMC - 2Q12 results below expectation
Period 2Q12/1H12
Actual vs. Expectations
Below ours and the consensus expectations.
1H12 core net profit of RM121m came in below ours and the consensus' FY12 full year estimates of RM343m and RM360m respectively. Our core net profit is derived after stripping out the RM750m exceptional gain from the disposal and fair value of Gas Malaysia Bhd (GMB) while adding back the provision for its Jazan project and group's provision of c.RM90m.
Dividends No dividend was declared during the quarter.
Key Result Highlights
For 1H12, the revenue increased marginally by 1% but core net profit rose by 48% due to better contribution from its associates and the construction division especially Zelan, which had narrowed its losses.
QoQ, the core net profit jumped by more than 216% due to the strong rebound in associate contribution, which increased by 235%. This was also supported by the higher margin from its transport division, especially PTP, which saw its container throughput increased by 4.6%.
Outlook We believe that MMC will be in the front line to acquire more new assets i.e. KTMB and to benefit from ETP-based project rollouts in the near term.
Change to Forecasts
We are keeping our forecasts unchanged at this juncture, as we expect the earnings to be better in 2H12, due partially to seasonal factors.
Rating Maintain OUTPERFORM
Maintain OUTPERFORM as we expect the share price to react to positive news on MMC i.e. the acquisition of KTMB and other assets acquisition.
Valuation We maintain our fair value at RM3.11 based on SoP valuation.
Risks Delays in the construction of MRT works and late delivery of MRT's TBM (Tunnel Boring Machine).
Source: Kenanga
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
Market Buzz
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
Introducing MY's First IPO Fund for Sophisticated Investors!
New Update. Discover investment communities that resonate with your ideas
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
Apps
Top Articles
1
save malaysia!
Visa-free travel to China extended for Malaysians to 30 days
2
3
Koon Yew Yin's Blog
CPO price is rising rapidly as shown by chart below - Koon Yew Yin
4
Axcapital's investment blog
KAB - Executing its way to a record quarter. Could more Petronas contracts be coming?
6
7
8
BFM Podcast
#
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....
