Tuesday, February 21, 2012

MSM Malaysia Holdings: Maintain Hold - 4Q11: Good end for the year

Raw sugar price volatility crimps profits. RM265.3m 2011 core net profit (+4.7% YoY) was marginally above our forecast of RM256m but in-line with consensus. This is a fair performance given the exceptionally high raw sugar price volatility in the year. We anticipate the management to announce a final dividend of at least 8sen/share at the upcoming AGM (full year 16sen/share), consistent to the minimum 50% payout ratio policy. Maintain Hold, with an unchanged target price of RM4.10/share based on DDM.

Maybank Research 21 Feb 2012

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