MIDF Research Maintain BUY with an unchanged TP of RM1.53 Above expectations. Cahya Mata Sarawak’s core net profit, excluding an unrealised foreign exchange loss of -RM74.9m, almost tripled to RM60.6m in 3QFY24 despite a -0.7%yoy drop in revenue to RM299.9m, mainly due to improved gross profit margins from its cement and Oiltools division. The cumulative 9MFY24 core net profit was above expectations after rising +72.7%yoy to RM117.7m, making up 84.5% of our full-year estimates and 86.5% of consensus.
【Maybank Investment】 Core profit above expectations; maintain BUY TP : RM1.60 CMS’ 3Q24 headline net loss of MYR9m included a MYR75m unrealised FX loss at its phosphate ops. Excluding this, 3Q core net profit was MYR66m, bringing 9M24 core net profit to MYR126m, above expectations at 85% of our FY24E and 92% of consensus – the beat coming from its cement ops (on better-than-expected margins). No change to our earnings forecasts as we expect reversal of some of 3Q’s unrealised FX loss in 4Q. Our unchanged TP of MYR1.60 is based on 10x FY25E PER (-0.5SD of LT mean). The stock remains undervalued, trading at 7.5x FY25E PER and 0.4x P/B. BUY.
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....
U1818
717 posts
Posted by U1818 > 3 weeks ago | Report Abuse
MIDF Research
Maintain BUY with an unchanged TP of RM1.53
Above expectations. Cahya Mata Sarawak’s core net profit, excluding
an unrealised foreign exchange loss of -RM74.9m, almost tripled to
RM60.6m in 3QFY24 despite a -0.7%yoy drop in revenue to RM299.9m,
mainly due to improved gross profit margins from its cement and Oiltools
division. The cumulative 9MFY24 core net profit was above expectations
after rising +72.7%yoy to RM117.7m, making up 84.5% of our full-year
estimates and 86.5% of consensus.