- Weighed down by volumes and cost. MYR112.7m 1H12 core net profit (-19.3% YoY) after excluding non-cash items was below ours and consensus, at 40% of our full-year forecast. Sugar volume sold was lower YoY due to weaker demand from industrial customers.
- On a plus side, the interim DPS of 11 sen suggests that management is adopting a 65% payout ratio (from 50% formerly). We lowered our earnings forecast, but maintain the stock at a Hold with a higher target price of MYR4.70/share (from MYR4.10).
- We value this stock on DDM and the higher payout ratio of 65% votes favourably on the stock’s fair value.
Source: Maybank Research - 15 August 2012
No comments:
Post a Comment