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Sunday, March 29, 2009

2Q2009 Outlook

Gloomy economic prediction in 2Q2009 will definitely affect the short term pricing of companies.But the long term trend is still up!

Hence,I'm not really concerned about economic prediction as long as the companies have good fundamental and reasonably valued.

Download the file here !


Results Review & Earnings Outlook

• MS’ 2008 results were within our expectations with a 2008 net profit of
MYR93.2 mln vs our net profit forecast of MYR93.8 mln. Net profit
rose 14.8% YoY to MYR93.2 mln from MYR81.1 mln in 2007 on the
back of a 13.7% YoY increase in turnover to MYR651.6 mln in 2008.

• On a QoQ basis, MS recorded a flat growth in net profit of MYR17.1
mln in 4Q08 vs MYR16.5 mln in 3Q08. Due the recent slowdown in
take-up rates for most property projects following the global financial
meltdown, MS sold only MYR30.1 mln worth of properties in 4Q08 vs
its budget of MYR50 mln. Nevertheless, MS managed to secure total
sales of MYR140 mln year-to-date on its 5/95 financing programme,
which allows buyers to pay only 5% upfront and the balance 95% of
the purchase price upon completion.

• Going forward, MS has unbilled sales of MYR479.7 mln as at end
2008 plus MYR140 mln YTD sales to support its earnings. Moreover,
MS is in a strong financial position to acquire more assets since: (i) it
has a total cash of MYR172.2 mln; (ii) cash flow of MYR213 mln upon
completion of The Icon Jalan Tun Razak in mid-2009; and (iii) ability to
raise MYR500 mln potentially.

• We tweaked our 2009 earnings projection to MYR99.2 mln from
previous MYR99.8 mln and introduce our forecast 2010 net profit of
MYR110.2 ml