Thursday, May 24, 2012

Guinness Anchor: Downgrade to Hold - Good Results Priced In

Continued growth, but largely priced in. 3QFY6/12 net profit of MYR51m (-21.7% QoQ; +5.2% YoY) was within expectations. 4Q tends to be the weakest quarter and without further clarity on increased dividends funded by its debt instruments, we see little impetus for the share price at this stage. Providing support, nevertheless, is a decent dividend yield of 4.6% for FY6/13. We maintain our MYR13.50 DCF-based TP but, with limited upside, we downgrade Guinness to a HOLD.

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Source: Maybank Research - 24 May 2012

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