AMRB’s MYR46.1m 1HFY13 core net profit, after stripping off MYR5.5m gains, beat expectations - accounting for 60% and 56% of our/consensus estimates respectively. We bump up our FY14 earnings forecast as there is high probability of the group securing more offshore installation & construction (OIC) and subsea jobs. Our FV is upgraded to MYR2.00 (from MYR1.65). Maintain BUY.
- Exceeding expectations. AMRB’s 1H13 core net profit (+7.6% q-o-q; +96.3% y-o-y) – after adjusting for the disposal of vessels gains worth MYR5.5m – exceeded expectations, despite weaker revenue (-20.8% q-o-q, -23.6% y-o-y). The improvement in profitability was mainly due to higher vessel utilisation and better operating margins.
- Small sweetener for shareholders. After zero dividends in FY11, AMRB declared a final dividend of 25 sen per share in respect of FY12. We adjusts our forecast to reflect a similar payout for FY13 and FY14.
- More to come in 2H13? AMRB could secure new jobs from the Pan-Malaysian transportation and installation umbrella contracts (benefitting its OIC division) and more inspection, repair and maintenance works. Both tenders could be awarded as soon as 2H13. Also, the group is looking to provide third-party chartering services for oil & gas (O&G) rigs, given the strong demand on the domestic front.
- Raising our FY14 earnings estimate. We make no changes to our FY13 financial forecast, as 4Q13 could potentially be a seasonally weaker quarter due to the monsoon season, coupled with the fact that profits from its newly secured jobs will only flow in towards FY14. We are raising our FY14 revenue forecast by 27.4% and our FY14 net profit estimate by 20.7%, as we factor in MYR160m worth of jobs annually to be secured by either its OIC or subsea divisions.
- Raising FV to MYR2.00. We retain our BUY recommendation, with a higher FV of MYR2.00 (from MYR1.65). Our FV is pegged to 14.0x FY14F EPS, which is a 10% discount to the current sector average.
Source: RHB
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Created by kiasutrader | Jun 14, 2016
Created by kiasutrader | May 05, 2016
Lotusf1
growth is building up 4alam....
2013-08-21 12:15