Written by CIMB Equities Research
Wednesday, 24 February 2010 08:56
KUALA LUMPUR: CIMB Equities Research said UMW's FY09 core net profit came in 9% below its forecast and 1% shy of consensus estimate.
It said on Wednesday, Feb 24 that it was keeping its OUTPERFORM call. Factors that could lead to a re-rating include 1) the improved earnings from the auto segment, 2) rising contribution from O&G, 3) listing of the O&G division.
It said although UMW's pretax profit was just 1% short of its forecast, net profits missed its forecast largely because of high minority interests as 51%-owned UMW Toyota performed better than expected.
A final single-tier dividend of 9 sen per share was declared for the quarter, bringing total DPS to 20 sen.
"We are cutting FY10-11 earnings by 4-6% after making some housekeeping adjustments and lowering our projection for O&G largely for the delay in the commissioning of Naga 2 and lower contribution from WSP.
"Our SOP target price is reduced from RM8.10 to RM7.95, which we continue to base on target P/Es of 13.5x for its auto division, 15x for its O&G division, and 10x for its manufacturing & equipment division," it said.
About Me
- Nuang
- Ibrahim bin Ramli@Nuang started his career with CIMB Wealth Advisors Berhad as Agency Manager in April, 2008.Previously he was an Internal Auditors and Accounts Executive with Perodua Sales Sdn Bhd since 17 August, 1994. His background:- 1.Certified of Achievement for Master Sales Leadership from Dr Lawrence Walter Ng of President of The Art Of Learning and International Of Learning Without Learning 2.Certified for eXtra Ordinary Performance of Lawrence Walter Award Certificate for One Million Ringgit Club 2007 3. Certified Life & General insurances 4. Conferred with Diploma in Business Studiess & Bachelor of Business Admin(Hons)Finance from UiTM, Terengganu Branch & Shah Alam respectively;
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