COMPANY
RESEARCH
MISC Bhd | Dividend surprise
Yen Ling Lee
Westports Holdings | Transitional year
Yen Ling Lee
SECTOR
RESEARCH
Regional Plantations | January 2017 stockpile on seasonal decline
Chee Ting Ong
MACRO
RESEARCH
Malaysia | Further pick up in growth
Suhaimi Ilias
Malaysia | PUNCHING THROUGH 1,700?
Tee Sze Chiah
NEWS
Outside Malaysia
Other News
COMPANY RESEARCH
Malaysia
Results Review
MISC Bhd (MISC MK)
by Yen Ling Lee
Share Price:
MYR7.60
Target Price:
MYR7.60
Recommendation:
Hold
Dividend surprise
While 4Q16 core net profit rebounded strongly, it was still below our expectation. We lower our 2017-18 EPS forecasts by 7%/4% on lower petroleum tanker rates and introduce our 2019 forecasts. MISC surprised with a high dividend payout which indicates a DY of 3.9% in 2016. Given its low net gearing of 16% and the long-term nature of its chartering business, we think the high dividend payout could be sustained. Maintain our HOLD call and SOP-based TP of MYR7.60.
FYE Dec (MYR m)
FY15A
FY16A
FY17E
FY18E
Revenue
10,908.4
9,597.2
9,513.9
9,910.5
EBITDA
3,913.2
3,898.8
4,106.8
4,424.4
Core net profit
2,782.0
1,914.0
1,930.0
2,092.1
Core EPS (sen)
62.3
42.9
43.2
46.9
Core EPS growth (%)
43.2
(31.2)
0.8
8.4
Net DPS (sen)
20.0
30.0
30.3
32.8
Core P/E (x)
12.2
17.7
17.6
16.2
P/BV (x)
1.0
0.9
0.9
0.9
Net dividend yield (%)
2.6
3.9
4.0
4.3
ROAE (%)
na
na
na
na
ROAA (%)
6.2
3.7
3.4
3.6
EV/EBITDA (x)
11.2
10.3
10.1
9.6
Net debt/equity (%)
2.3
15.4
15.4
16.9
Yen Ling Lee
(603) 2297 8691
lee.yl@maybank-ib.com
Malaysia
Results Review
Westports Holdings (WPRTS MK)
by Yen Ling Lee
Share Price:
MYR4.13
Target Price:
MYR4.40
Recommendation:
Hold
Transitional year
Strong 4Q16 net profit was within expectations. Share price is down 4% YTD on uncertainties following CMA CGM’s plan to move 1m TEUs out of Westports in 2017 and that surrounding UASC. That said, volume growth in 1H17 could still be strong given the ad-hoc activities by the two new shipping alliances. We maintain our 2017-18 EPS forecasts and introduce 2019 forecast; also, our DCF-derived TP of MYR4.40 (WACC: 6.7%; 2025-54 growth rate: 2%) and HOLD call.
FYE Dec (MYR