Stock Name: MBMR
Company Name: MBM RESOURCES BHD
Company Name: MBM RESOURCES BHD
| Research House: HLG | Price Call: HOLD | Target Price: 4.25 |
MBM (Hold)
Aggressive Expansion Plan
- In line ' Reported 4Q11 corenet profit of RM32.2m, leading to FY11 core profit ofRM127.5m, as compare to our forecast of RM131.9m and consensus's RM133.0m.
- FY11 sales was relatively unaffected by Thailandand Japanese crisis, for its main products are VW, Volvo (Continental cars) andPerodua (most parts are locally sourced).
- However, margins were affected by unfavourable forexmovements and also increase in raw material prices.
- MBM has been expanding its own operation aggressively and acquiringother related automotive businesses.
- Proposed 3-for-10 bonus issues and 3-for-10 rights issues (with 3detachable warrants) to raise RM55-104.6m funds. The indicative price of therights issue is RM1.42.
- Announced final gross dividend of 6 sen less 25% tax (net dividend 4.5sen). The total net dividend for FY11 will be 9 sen (2.1% net dividend yield).
- Maintain Hold with higher Target Price of RM4.25.
Source: HLIB Research 27 Feb 2012
No comments:
Post a Comment