NCB's FY12  core  net  income  of  RM169m  (-1%  y-o-y)  missed  our  estimate  by  11%. The  marginal  profit  drop  was  attributed  to  lower  port  revenue  due  to  a  3%  drop  in throughput,  as  well  as  high  start-up  cost  at  its  logistics  business.  As  we  trim  our earnings  by  18%  and  15%  for  FY13  and  FY14  to  factor  in  the  higher  costs,  our  FV dips to RM5.38 from RM5.59, premised on DCF, with 11.5% cost of equity.  Maintain BUY given the stock's steady dividend growth and more than 4% yield.

Down  on  start-up  losses,  lower  containers  handled.  NCB's FY12  core  net  income totaled RM169m (-1% y-o-y) while revenue inched up 3.4% y-o-y to RM1.02bn. While the topline numbers were 3% above our forecast, NCB's bottom-line somewhat disappointed, falling short by 11%. Throughput volume declined by 3% in 2012 owing to port congestion caused by the construction of its new container terminal, vs Port Klang's overall growth of 4.1%  in  2012  contributed  by  Westports.  The  marginally  lower  FY12  profit  was  dragged down  by  a  lower  topline  (-4%  y-o-y)  at  its  high-margin  port  division,  which  saw  a  fall  in container  throughput  and  incurred  start-up  losses  due  to  new  business  expansion  at  its logistics division. This was despite the higher revenue growth of 41% y-o-y during the year.

Source: OSK