DRB-Hicom Bhd (Results Review): 1QFY13: Earnings dragged down by Lotus

Date: 
2012-08-28
Firm: 
ECMLIBRA
Stock: 
DRBHCOM
Price Target: 
3.45
Price Call: 
BUY
Last Price: 
1.32
Upside/Downside: 
+2.13 (161.36%)
(Maintain BUY, TP: RM3.45)

DRB-Hicom turned in 1QFY13 revenue of RM3.5bn which more than doubled y-o-y. However, losses incurred by Lotus, higher finance costs and lower contribution from jointly-controlled entities, dragged down pretax profit to RM97.9m, a drop of 33% y-oy. As a result, net profit dropped 64% y-o-y to RM32.6m which was below expectation, as it only made up 7% of both our and consensus FY13 full year forecasts. Management has stated that Proton's acquisition will not impair the Group's profitability in the long-term, as it has several initiatives to improve cost, quality and delivery efficiencies planned. We make no changes to our earnings estimates. Maintain Buy, with target price of RM3.45.


Discussions
1 person likes this. Showing 4 of 4 comments

herbert456

Good

2012-08-28 14:07

Mohd Raez Muzamel

harap2 la...3.45 impossible

2012-08-28 14:55

yeethimtat

keep lotus ?????????????

2012-09-10 11:08

herbert456

there were rumours that they r selling LOTUS, but then again who knows??

2012-09-10 11:10

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