Stock Name: TANJONG
Company Name: TANJONG PUBLIC LIMITED COMPANY
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research says Tanjong plc remains an Outperform as it sees potential re-rating for the power-gaming company. It said on Thursday, March 25 the catalysts will be a replacement NFO game, a sustainable turnaround at Tropical Islands, more M&As and a potential separate listing of its power arm. Tanjong's FY1/10 core results missed CIMB Research and consensus estimates by 4% due to higher-than-expected RTO losses and net interest expense. "But investors can take comfort in the higher-than-expected gross DPS of 47.5 sen in 4Q, which took FY10 total DPS to 100 sen, above our 95 sen estimate and FY09's 90 sen," it said. After i) updating FY10's figures and ii) imputing RM30 million scheduled maintenance costs for FY11, it scaled back its FY11-12 core EPS figures by 5-7% while introducing an estimate for FY13. CIMB Research raised its FY11-12 DPS estimates by 5% in view of FY10's higher payout. "Despite the earnings cuts, our end-CY10 SOP-based target price rises from RM19.85 to RM21.10 (10% discount intact) after i) updating our COE assumptions with the latest estimates, ii) reflecting FY10 actual figures, and iii) valuing TGV at its NBV following its first full-year contribution as a 100%-owned subsidiary," it said.
Company Name: TANJONG PUBLIC LIMITED COMPANY
Research House: CIMB
KUALA LUMPUR: CIMB Equities Research says Tanjong plc remains an Outperform as it sees potential re-rating for the power-gaming company. It said on Thursday, March 25 the catalysts will be a replacement NFO game, a sustainable turnaround at Tropical Islands, more M&As and a potential separate listing of its power arm. Tanjong's FY1/10 core results missed CIMB Research and consensus estimates by 4% due to higher-than-expected RTO losses and net interest expense. "But investors can take comfort in the higher-than-expected gross DPS of 47.5 sen in 4Q, which took FY10 total DPS to 100 sen, above our 95 sen estimate and FY09's 90 sen," it said. After i) updating FY10's figures and ii) imputing RM30 million scheduled maintenance costs for FY11, it scaled back its FY11-12 core EPS figures by 5-7% while introducing an estimate for FY13. CIMB Research raised its FY11-12 DPS estimates by 5% in view of FY10's higher payout. "Despite the earnings cuts, our end-CY10 SOP-based target price rises from RM19.85 to RM21.10 (10% discount intact) after i) updating our COE assumptions with the latest estimates, ii) reflecting FY10 actual figures, and iii) valuing TGV at its NBV following its first full-year contribution as a 100%-owned subsidiary," it said.
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