Journey to Wealth
Bina Puri Holdings - 1H12 results below expectations
Period 2Q12/1H12
Actual vs.Expectations The 1H12 net profit of RM4.2m came in below our estimates, making up only 30% of our FY12E net profit.
Dividends No dividend was declared during the quarter.
Key Result Highlights YoY, the net profit dip by 45% from RM6m to RM4m due to the lower contribution from its construction division coupled with a higher effective tax rate due to the under provision of taxation in the previous year (effective tax rate was at 34% for the 1H12).
QoQ, the net profit has increased marginally by 2% despite the 6% drop in revenue. This was mainly due to the positive contribution from its micro power service division, which only started operations in July 2011.
Outlook Its current order book now stands at RM2.5b, mwhich will provide earnings visibility for the next 2 years.
Other than the KLIA2 construction works, we expect the LRT extension works to start contributing from 2H12 onwards.
Change to Forecasts We have cut our FY12-13E by 29% and 18% respectively due to the reduction in our FY12 order book replenishment assumption from RM400m to RM200m.
Rating Maintain OUTPERFORM
The stock still offers approximately 35% upside from here.
Valuation We lowered our Target price to RM1.12 (previously, RM1.24) with a lower 7.0x PER (vs. 10x previously) on our revised FY13E EPS of 15.9 sen.
Risks Escalating building material prices.
Source: Kenanga
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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....
