MBM (Hold)
Aggressive Expansion Plan
- In line – Reported 4Q11 core net profit of RM32.2m, leading to FY11 core profit of RM127.5m, as compare to our forecast of RM131.9m and consensus’s RM133.0m.
- FY11 sales was relatively unaffected by Thailand and Japanese crisis, for its main products are VW, Volvo (Continental cars) and Perodua (most parts are locally sourced).
- However, margins were affected by unfavourable forex movements and also increase in raw material prices.
- MBM has been expanding its own operation aggressively and acquiring other related automotive businesses.
- Proposed 3-for-10 bonus issues and 3-for-10 rights issues (with 3 detachable warrants) to raise RM55-104.6m funds. The indicative price of the rights issue is RM1.42.
- Announced final gross dividend of 6 sen less 25% tax (net dividend 4.5 sen). The total net dividend for FY11 will be 9 sen (2.1% net dividend yield).
- Maintain Hold with higher Target Price of RM4.25.
Source: HLIB Research 27 Feb 2012
No comments:
Post a Comment