Steady as always
- 3QFY8/15 results beat. Revenue up 0.5% YoY, net profit up 9.6% YoY.
- Raise EPS by 4-5% for lower financing costs.
- Maintain HOLD given uninspiring growth, with support from yields. Raise SOTP TP to SGD4.10 from SGD4.06 after EPS changes.
Results beat
- 3QFY8/15 net profit was up 9.6% YoY, slightly beating our forecast.
- 9M EPS formed 80% of our full-year forecast.
- Revenue was up 0.5% YoY to SGD314m on a 16.5% increase in the property segment. The latter came from Seletar Mall’s maiden contributions.
- Media was still weak, down 5.6% YoY, though it improved 14.9% QoQ.
- Bottom line was boosted by a 2.4% YoY decline in operating costs.
- Material, production and distribution costs were 4.8% lower YoY due to lower newsprint costs.
- The company expects newsprint prices to soften in the near term in view of weak demand.
- Lower staff costs were due to less bonus provisions.
Maintain HOLD with higher TP
- We think media’s QoQ improvement was led by seasonality.
- A strong recovery is not likely given muted economic growth and a challenging media landscape. That leaves property its only growth driver, in our view.
- Maintain HOLD given its uninspiring growth outlook, with decent 5% yield support expected.
- We raise our net-profit forecasts by 4-5% for the next three years to factor in lower financing costs after the redemption of its SGD600m MTN in March.
- As a result, our SOTP TP rises from SGD4.06 to SGD4.10.
(Wei Bin)
Source: http://www.maybank-ke.com.sg
Source: http://www.maybank-ke.com.sg
