KUALA LUMPUR: Maybank IB Research is maintaining its Sell recommendation for NCB Holdings Bhd, one of the two operators in Port Klang, lowering the target price to RM2.25 from RM2.62 previously.
It is also cutting its FY14 to FY16 earnings per share (EPS) forecasts by 78%, 47% and 29%.
“The third quarter 2014 net loss of RM2mil (vs RM27mil net profit for Q3 2013 and RM3mil in Q2 2014) brought the nine-month FY14 net profit to RM5mil – down 91% year-on-year, substantially below our and street estimates as both port and logistics divisions performed poorly,” the research house said.
Revenue from the port operation was 9% weaker year-on-year in the latest quarter on sliding container throughput (down 10% y-o-y) – dragged by both local and transhipment segments,” Maybank IB said.
Apart from the unsteady year-on-year volume, higher port lease rental and higher depreciation charge also contributed to the decline in pre-tax profit, which was down 79% y-o-y and 38% q-o-q).
Meanwhile the pre-tax loss at NCB’s logistics division widened to RM11mil in Q3 due to the lower business activities in certain business streams.
“On a positive note, logistics’ operational expenditure (Opex) fell 10% y-o-y due to the lower cost incurred on outsourcing to service providers and lower provision for doubtful debts,” the research house said.
In view of the company's growing net debt of RM151mil (end 3Q, 2013:RM33mil net cash), Maybank IB is also lowering its dividend per share (DPS) expectation for FY2014-2016 to 4 sen, 6 sen and 10 sen respectively from 7 sen, 9 sen and 11sen, suggesting a yield of only 1.5% for FY2014.
“We expect NCB to declare its traditional final DPS in 4Q, 2014, matching the 2 sen in 2Q, 2014,” it said.
http://www.thestar.com.my
It is also cutting its FY14 to FY16 earnings per share (EPS) forecasts by 78%, 47% and 29%.
“The third quarter 2014 net loss of RM2mil (vs RM27mil net profit for Q3 2013 and RM3mil in Q2 2014) brought the nine-month FY14 net profit to RM5mil – down 91% year-on-year, substantially below our and street estimates as both port and logistics divisions performed poorly,” the research house said.
Revenue from the port operation was 9% weaker year-on-year in the latest quarter on sliding container throughput (down 10% y-o-y) – dragged by both local and transhipment segments,” Maybank IB said.
Apart from the unsteady year-on-year volume, higher port lease rental and higher depreciation charge also contributed to the decline in pre-tax profit, which was down 79% y-o-y and 38% q-o-q).
Meanwhile the pre-tax loss at NCB’s logistics division widened to RM11mil in Q3 due to the lower business activities in certain business streams.
“On a positive note, logistics’ operational expenditure (Opex) fell 10% y-o-y due to the lower cost incurred on outsourcing to service providers and lower provision for doubtful debts,” the research house said.
In view of the company's growing net debt of RM151mil (end 3Q, 2013:RM33mil net cash), Maybank IB is also lowering its dividend per share (DPS) expectation for FY2014-2016 to 4 sen, 6 sen and 10 sen respectively from 7 sen, 9 sen and 11sen, suggesting a yield of only 1.5% for FY2014.
“We expect NCB to declare its traditional final DPS in 4Q, 2014, matching the 2 sen in 2Q, 2014,” it said.
http://www.thestar.com.my
