KUALA LUMPUR: CIMB Equities Research says Tasek Corp's 1Q10 results were broadly within its expectations even though annualised core net profit worked out to only 92% of forecast.
“This is because we expect a stronger 2H due to a likely uptick in demand for building materials,” it said in a report on Wednesay, April 28.
Tasek’s revenue improved by about 6% qoq in 1Q10, helped by its aggressive sales strategies. Although rebates increased across the industry, the company managed to sustain its EBIT margin at about 15.6% due to its continuous efforts to improve plant efficiency and processes.
“We retain our earnings forecasts and target price of RM5.90, which uses a blend of 13.5x P/E and 1.0x P/BV.
“While we acknowledge that a stronger pick-up in demand is likely to come through in 2H, we see limited short-term catalysts for Tasek given the current weak demand and competitive pricing in the industry. In light of this, we maintain our NEUTRAL call,” 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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