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Litrak - Decent Numbers

kiasutrader
Publish date: Thu, 28 Feb 2013, 09:52 AM

Litrak's 9MFY13  net  profit  of  RM96.9m  was  in  line  with  both  our  and  consensusexpectations,  at  73.2%  and  74.3%  of  the  respective  full  year  estimates.  A  second interim DPS of 7.0 sen was declared, bringing its YTD payout to 17.0 sen. That said, we are ceasing coverage on the stock due to an internal resource reallocation. Our last recommendation was BUY, with a FV of MYR4.44.  

Decent  YTD  numbers. Litrak registered 9MFY13 revenue RM277.8m, up 3.0% y-o-y, on higher  traffic  volume.  EBIT,  however,  shed  4.6%  y-o-y  to  RM204.6m  on  higher depreciation  and  amortisation  expenses  recognized  following  the  revised  toll  revenue projections  on  LDP  (Lebuhraya  Damansara-Puchong)  in  4QFY12  and  the  completion  of major upgrade projects along the said highway. All in, net income came in 5.0% lower y-o-y, but within our estimates, at RM96.9m as the  higher effective tax rate  was partly offset by lower interest expenses incurred as well as narrower losses at its 50%-owned SPRINT operations. On a quarterly basis, 3QFY13 core earnings of RM30.4m was weaker on both q-o-q  and  y-o-y  basis  owing  to  the  higher  depreciation  and  amortisation  expenses  of RM13.9m (+45.9% y-o-y; +6.2% q-o-q) booked in during the quarter.

YTD DPS at 17.0 sen. On a side note, management declared a second interim DPS of 7.0 sen, bringing its YTD payout to 17.0 sen. While this translates into a decent yield of 3.9% YTD, it fell slightly short of our previous expectation of 20.0 sen for FY13f. Note that Litrak typically announces its dividends in 1Q and 3Q of its FYs. 
 
Ceasing  coverage.  That  said,  we  are  ceasing  coverage  on  the  company  due  to  internal resource  reallocation.  Our  last  recommendation  on  the  stock  was  BUY,  with  an  SOP-based FV of MYR4.44.
Source: OSK
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