Stock Name: GENP
Company Name: GENTING PLANTATIONS BERHAD
Genting Plantation Bhd's (GENP) net profit for the second quarter ended June 30, 2012 is expected to be flat quarter-on-quarter at RM80 million-RM90 million, says Maybank Investment Bank (Maybank IB).
In a research note today, the bank said the expected flattish results followed disappointing fresh fruit bunches (FFB) output and stable spot of crude palm oil average selling price.
"As a result, the first-half results would amount to just about 35 per cent of our previous financial year 2012 (FY12) net profit forecast.
"Ahead of its results release, we cut our FY12 net profit estimate by 12 per cent to reflect no growth in FFB production for 2012," it said.
Maybank IB said production has entered a seasonally stronger period and the bank expected earnings to play significant catch-up in second half of 2012.
"GENP has said unlike in the past four years whereby the first- and second-half production ratio averaged 45:55 per cent, the ratio in 2012 will be unique at around 40-42 per cent:58-60 per cent," it said.
The bank said the contributions from the property sector would be small but growing as the company continued to enjoy robust sales for its Johor properties in second quarter of this year with positive spillover effect from its Johor Premium Outlet.
Maybank IB has maintained its 'hold' call on the company with an unchanged target price of RM9.10. -- Bernama
Company Name: GENTING PLANTATIONS BERHAD
| Research House: MAYBANK | Price Call: HOLD | Target Price: 9.10 |
Genting Plantation Bhd's (GENP) net profit for the second quarter ended June 30, 2012 is expected to be flat quarter-on-quarter at RM80 million-RM90 million, says Maybank Investment Bank (Maybank IB).
In a research note today, the bank said the expected flattish results followed disappointing fresh fruit bunches (FFB) output and stable spot of crude palm oil average selling price.
"As a result, the first-half results would amount to just about 35 per cent of our previous financial year 2012 (FY12) net profit forecast.
"Ahead of its results release, we cut our FY12 net profit estimate by 12 per cent to reflect no growth in FFB production for 2012," it said.
Maybank IB said production has entered a seasonally stronger period and the bank expected earnings to play significant catch-up in second half of 2012.
"GENP has said unlike in the past four years whereby the first- and second-half production ratio averaged 45:55 per cent, the ratio in 2012 will be unique at around 40-42 per cent:58-60 per cent," it said.
The bank said the contributions from the property sector would be small but growing as the company continued to enjoy robust sales for its Johor properties in second quarter of this year with positive spillover effect from its Johor Premium Outlet.
Maybank IB has maintained its 'hold' call on the company with an unchanged target price of RM9.10. -- Bernama
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