KLCC Property (HOLD) - Results In-Line

KLCC Property (HOLD)

Results In-Line

• 9M FY11 net profit rose 234% yoy to RM657.6m, due to RN1.1bn of asset revaluations in 3Q and change in financial year-end from Mar to Dec.
• However, normalized 9M PBT rose 6.5% yoy to RM458.6m, making up 73% of our 12-month estimate, and we deem results to be in-line.
• The retail segment has done particularly well, with a 19.3% yoy rise in 3Q revenue as their extensive efforts to improve tenant mix have paid off. 
• 5 sen single-tier second interim dividend was declared, bringing total dividends for the year to 10.0 sen, in-line with our full-year forecast of 10.5 sen
• Given the recent improvement in share price, we now downgrade to HOLD with an unchanged target price of RM3.46 (15% discount to RNAV).  

Source: HLIB Research 27 Feb 2012