WPRTS (5246) - Westports’ net income surges 17.7%
Westports Holdings Bhd
(Feb 12, RM3.50)
Maintain hold call and raise target price to RM3.40: Westports’ net income for the financial year ended December 2014 (FY14) surged by 17.7% to a record level of RM512.2 million. This is well within our forecast, making up 99.55% of our estimate.
Nonetheless, net profit for the fourth quarter of FY14 slipped by 0.8% quarter-on-quarter due to a 5.2% fall in revenue attributed to a 11.6% drop in conventional throughput.
Westports declared a second single-tier dividend of 6.15 sen for FY14, which totalled 11.25 sen for FY14.
Westports’ record-breaking net income of RM512.2 million was due mainly to the higher container throughput of 12.1% year-on-year and a lower effective tax rate of 11.5%.
Capital expenditure (capex) for FY14 was approximately RM360 million, primarily for the construction of CT7, which subsequently saw an increase in gearing to 0.40 times from 0.35 times before. Total capex for construction of CT8 is expected to be around RM1 billion from 2015 to 2017.
The Ministry of Finance has turned down Westports’ request for extension of its investment tax allowance for another five years, thus Westports’ effective tax rate for FY15 will be at 18% to 20% for the first year of the CT8 expansion plan and 24% onwards.
We have revised our earnings for FY15 (+17%) and FY16 (+4.6%) premised on the commencement of Ocean Three and the CT8 expansion plan, which will contribute up to 13.5 million 20-foot equivalent units (TEUs) against the the current 11 million TEUs. — BIMB Securities Research, Feb 12
Westports Holdings Bhd
(Feb 12, RM3.50)
Maintain hold call and raise target price to RM3.40: Westports’ net income for the financial year ended December 2014 (FY14) surged by 17.7% to a record level of RM512.2 million. This is well within our forecast, making up 99.55% of our estimate.
Nonetheless, net profit for the fourth quarter of FY14 slipped by 0.8% quarter-on-quarter due to a 5.2% fall in revenue attributed to a 11.6% drop in conventional throughput.
Westports declared a second single-tier dividend of 6.15 sen for FY14, which totalled 11.25 sen for FY14.
Westports’ record-breaking net income of RM512.2 million was due mainly to the higher container throughput of 12.1% year-on-year and a lower effective tax rate of 11.5%.
Capital expenditure (capex) for FY14 was approximately RM360 million, primarily for the construction of CT7, which subsequently saw an increase in gearing to 0.40 times from 0.35 times before. Total capex for construction of CT8 is expected to be around RM1 billion from 2015 to 2017.
The Ministry of Finance has turned down Westports’ request for extension of its investment tax allowance for another five years, thus Westports’ effective tax rate for FY15 will be at 18% to 20% for the first year of the CT8 expansion plan and 24% onwards.
We have revised our earnings for FY15 (+17%) and FY16 (+4.6%) premised on the commencement of Ocean Three and the CT8 expansion plan, which will contribute up to 13.5 million 20-foot equivalent units (TEUs) against the the current 11 million TEUs. — BIMB Securities Research, Feb 12
This article first appeared in The Edge Financial Daily, on February 13, 2015.
http://www.theedgemarkets.com/my/article/westports%E2%80%99-net-income-surges-177
http://www.theedgemarkets.com/my/article/westports%E2%80%99-net-income-surges-177
