Stocks In Focus MY : GENP (2291), IBHD (4251), MAXIS (6012) – 14/11/14
Stocks In Focus MY (Genting Plantations, I-Berhad, Maxis) – 14/11/14
RHB Research Retains ‘Buy’ On Genting Plantations
RHB Research remains upbeat on Genting Plantations, on the back of strong fresh fruit bunches (FFB) production. FFB production for the nine-month period ended 30 September was stronger than expected, with expectations of an even stronger 2015.
The research house believes that the strong FFB production will help offset lower crude palm oil (CPO) prices and the more property launches by the group in 4Q14 will allow earnings to catch-up to FY13’s level by year-end.
With higher FFB production expected and property sales to pick-up, RHB Research tweaked its earnings forecasts up by 4 percent to 6 percent for FY14 and FY15.
Significance: Post-earnings revision, the research house lifted its sum-of-parts based target price slightly to RM11.60 from RM11.15, maintaining a ‘Buy’ rating on the group while highlighting that stripping off the realised net asset value of the company’s property landbank from its current market capitalisation would bring its price to earnings ratio down by 5 times to 6 times.
I-Berhad 3Q14 Earnings Quadruple To RM14m
For the third quarter ended 30 September, I-Berhad’s net profit surged more than four-fold to RM14.2 million as revenue expanded 117.8 percent to RM77.4 million, on the back of higher contributions from the group’s property development division.
Property development segment has been growing rapidly and the better performance was driven by the higher percentage of recognition for both the project completion and sales for several of the group’s projects.
For the nine-month period, top and bottom lines grew 100 percent and 176.2 percent to RM193 million and RM39.7 million respectively.
Significance: The group’s management has expressed confidence that the firm would be able achieve better operating results for FY14, with contributions from both property development and leisure segments, as new attractions come on stream and with the recent launch of the Liberty Tower project.
Maxis’ 3Q14 Net Profit Slips 5%
For the third quarter ended 30 September, Maxis posted a 4.9 percent decline in net profit to RM449 million, in tandem with a 7.8 percent fall in revenue to RM2.1 billion. Continued decline in voice and SMS usage and a RM16 million impact from the re-pricing of postpaid pay per use charges resulted in the lower bottom line.
The group noted that third quarter numbers were broadly stable but operational drivers are showing an upward trend. The firm sees many more opportunities to create positive surprises that will make customers feel special and create ‘like’ moments.
Despite already having a competitive network serving a majority of the population as well as leading the long-term evolution (LTE) population coverage in the country, Maxis wants to improve its capabilities better to serve customers, with RM337 million spent on capital expenditure in 3Q14 and targets to spend RM1 billion this year.
Significance: For the third quarter, Maxis announced an interim dividend of RM0.08 per share. For FY14, the group expects its service revenue to be slightly below that of the preceding financial year, taking into account that the industry is fast maturing and as the company continues with its transformation and market initiatives.
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Stocks In Focus MY (Genting Plantations, I-Berhad, Maxis) – 14/11/14
RHB Research Retains ‘Buy’ On Genting Plantations
RHB Research remains upbeat on Genting Plantations, on the back of strong fresh fruit bunches (FFB) production. FFB production for the nine-month period ended 30 September was stronger than expected, with expectations of an even stronger 2015.
The research house believes that the strong FFB production will help offset lower crude palm oil (CPO) prices and the more property launches by the group in 4Q14 will allow earnings to catch-up to FY13’s level by year-end.
With higher FFB production expected and property sales to pick-up, RHB Research tweaked its earnings forecasts up by 4 percent to 6 percent for FY14 and FY15.
Significance: Post-earnings revision, the research house lifted its sum-of-parts based target price slightly to RM11.60 from RM11.15, maintaining a ‘Buy’ rating on the group while highlighting that stripping off the realised net asset value of the company’s property landbank from its current market capitalisation would bring its price to earnings ratio down by 5 times to 6 times.
I-Berhad 3Q14 Earnings Quadruple To RM14m
For the third quarter ended 30 September, I-Berhad’s net profit surged more than four-fold to RM14.2 million as revenue expanded 117.8 percent to RM77.4 million, on the back of higher contributions from the group’s property development division.
Property development segment has been growing rapidly and the better performance was driven by the higher percentage of recognition for both the project completion and sales for several of the group’s projects.
For the nine-month period, top and bottom lines grew 100 percent and 176.2 percent to RM193 million and RM39.7 million respectively.
Significance: The group’s management has expressed confidence that the firm would be able achieve better operating results for FY14, with contributions from both property development and leisure segments, as new attractions come on stream and with the recent launch of the Liberty Tower project.
Maxis’ 3Q14 Net Profit Slips 5%
For the third quarter ended 30 September, Maxis posted a 4.9 percent decline in net profit to RM449 million, in tandem with a 7.8 percent fall in revenue to RM2.1 billion. Continued decline in voice and SMS usage and a RM16 million impact from the re-pricing of postpaid pay per use charges resulted in the lower bottom line.
The group noted that third quarter numbers were broadly stable but operational drivers are showing an upward trend. The firm sees many more opportunities to create positive surprises that will make customers feel special and create ‘like’ moments.
Despite already having a competitive network serving a majority of the population as well as leading the long-term evolution (LTE) population coverage in the country, Maxis wants to improve its capabilities better to serve customers, with RM337 million spent on capital expenditure in 3Q14 and targets to spend RM1 billion this year.
Significance: For the third quarter, Maxis announced an interim dividend of RM0.08 per share. For FY14, the group expects its service revenue to be slightly below that of the preceding financial year, taking into account that the industry is fast maturing and as the company continues with its transformation and market initiatives.
http://www.sharesinv.com
