-The Future Is Brighter Ahead
- FY11 core results (excluding exceptional) below HLIB and consensus expectations due to the heavy industry division (cost escalation and lapse in new contract) and lower plantation contribution in 4Q.
-4th interim single-tier dividend of 9 sen, making total of 29 sen, below our projection of 34.5 sen but not disappointing is add the dividend in species of Pharmaniaga shares.
- Despite the earnings disappointment, the new petrol vessel contract and maiden full year contribution from Pharmaniaga will revive earnings expansion from FY12 onwards.
- Rare stock that provide earnings growth and high yield.
- FY12-13 forecasts cut by 7-9% following the results.
- Maintain Buy.
-Target price raised to RM6.20 (10% discount to estimated SOP of RM6.89) from RM5.91, incorporating our higher TP for Affin, latest BHIC price and fine-tuning post FY11 results.