May 27, 2011

BIPORT - CIMB Research maintains Neutral on Bintulu Port

Stock Name: BIPORT
Company Name: BINTULU PORT HOLDINGS BHD
Research House: CIMB

KUALA LUMPUR: CIMB Equities Research said Bintulu Port's 1Q11 core net profit came in within expectations, at 26% of its full-year estimate and 27% of consensus.

It said on Friday, May 27 that the interim single-tier dividend of 7.5 sen declared for the quarter was expected.

'In the absence of earnings surprises, we are retaining our FY11-13 earnings projections and DCF-based target price of RM7.00. We maintain our NEUTRAL rating as Bintulu Port's lack of earnings catalysts should be compensated by its high gross dividend yields of 8%.

'However, we prefer Malaysia Airports for exposure to the transport infrastructure sector,' it said.

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