Journey to Wealth
TRC Synergy - FY12 results within expectations
Period 4QFY12/12MFY12
Actual vs. Expectations TRC's FY12 earnings of RM10.2m came in within ours but were below the street's estimates, making up 100% and 71% of our net profit and that of the consensus respectively.
Dividends No dividend was declared during the quarter.
Key Result Highlights QoQ, the 4Q12 earnings was down 16% from RM5.0m to RM4.2m despite a 25% growth in the revenue, mainly due to a 2.2ppt fall in its construction pretax margin from 5.0% to 2.8%.
YoY, the 4Q12 net profit grew 65% to RM4.2m from RM2.6m, underpinned by a strong revenue growth of 101%. The strong revenue growth was mainly due to a higher recognition and the commencement of several major projects, i.e. the LRT extension line, MRT station work packages, MRT depot work packages and Samalaju Port dredging works.
For the full year, the net earnings were down by 24% to RM10.2m despite the 62% growth in the pretax profit to RM24.1m from RM14.8m due mainly to a higher effective tax rate of 57.7%. The higher tax rate was due to the underprovision of tax in the prior years. However, we expect its tax rate to normalise back to 25% going forward.
Outlook TRC's order book currently stands at c.RM2.0b for the next three years. To recap, TRC was awarded a RM170m road work package in Sarawak at the beginning of the year and we expect TRC to continue to bid for contracts in Sarawak and to also expand its property development business there.
Change to Forecasts No changes to our forecasts.
Rating Maintain MARKET PERFORM
We are maintaining our MARKET PERFORM rating on the stock at this juncture given risk/uncertainty arising from the upcoming General Election.
Valuation We are keeping our Target Price of RM0.63 based on an unchanged 8.0x Fwd PER on its FY13E EPS of 7.9 sen.
Risks Further delays in the LRT/MRT projects.
Source: Kenanga
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
Market Buzz
-43.16%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
MQ Trading Signals
Time
Signal
Duration
Type
2024-11-26 16:45:00
EMA 5
5 Mins
BUY
2024-11-26 16:40:00
ADX
10 Mins
BUY
2024-11-26 16:40:00
ADX
5 Mins
BUY
2024-11-26 16:40:00
TURTLE SYSTEM 20
5 Mins
BUY
2024-11-26 15:10:00
ADX
10 Mins
SELL
Apps
Top Articles
1
2
3
Koon Yew Yin's Blog
4
save malaysia!
6
THE INVESTMENT APPROACH OF CALVIN TAN
7
8
CEO Morning Brief
#
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....
