STEng – BT
ST Engg posts $528m full-year net profit
Group has record orderbook of $12.3b, expects higher sales in 2012
ST Engineering – which rang in a record orderbook of $12.3 billion – said yesterday that it expected higher revenue and pre-tax profit this year, with about one- third of the order backlog, or $3.9 billion, set for delivery in 2012.
The details came as full- year net profit for the group edged higher by 7.4 per cent amid flat growth in sales.
Net profit for the 12 months ended Dec 31, 2011, stood at $528 million, up from 2010’s $491 million.
The results were below earnings estimates of $579 million, according to a Bloomberg poll of 15 analysts.
The full-year profit attributable to shareholders translated to earnings per share of 17.28 cents, up from 2010’s 16.21 cents.
Full-year revenue stood pat at $5.99 billion. Sales in the aerospace and electronics segments were stronger but the group saw poorer performance in the land systems and marine divisions.
But cost of sales went down by a slightly quicker rate, lifting gross profit by 3.3 per cent to $1.3 billion for the year.
A ‘benchmarking exercise’ of inventory obsolescence estimates brought its net allowance for inventory obsolescence to $181,000 compared with $27.6 million a year ago.
Net finance costs fell 55.3 per cent to $19.4 million, thanks to foreign exchange gains of $4.83 million. A year ago, the group posted a forex loss of $8.72 million. Interest expenses were also lower.
Revenue from its biggest sales contributor – the aerospace division – inched up 3 per cent to $1.92 billion, with higher revenue from its component/engine repairs and overhaul business as well as engineering and material services offset by lower sales in its aircraft maintenance and modification business. Its revenue contribution stood at 32 per cent of total sales.
Sales from its electronics department rose 7 per cent to $1.48 billion, boosted in part by recorded revenue from its work on the Circle Line and the Bangkok automatic fare collection system projects.
But revenue from its marine sector slid 16 per cent to $876 million, dragged down by lower shipbuilding revenue after a contract for a roll-on/roll-off passenger ferry – ships that have cargo with wheels driven on and off the ship – was terminated.
In profitability terms, only the land systems division recorded lower pre-tax profit for the full year, compared with the previous 12 months.
Pre-tax profit for the sector stood at $108 million, down 5 per cent from a year ago, due mainly to the impact of an ‘unfavourable product mix’ that was partly offset by lower foreign exchange losses and favourable fair value change of embedded derivatives.
Earnings before tax for the aerospace sector rose 6 per cent to $278 million, while pre-tax profit for the electronics sector rose 7 per cent to $137 million.
The group proposed a final dividend of 12.5 cents per share.
Shares of ST Engineering closed two cents higher at $3.08 yesterday.
STEng – BT
ST Engg posts $528m full-year net profit
Group has record orderbook of $12.3b, expects higher sales in 2012
ST Engineering – which rang in a record orderbook of $12.3 billion – said yesterday that it expected higher revenue and pre-tax profit this year, with about one- third of the order backlog, or $3.9 billion, set for delivery in 2012.
The details came as full- year net profit for the group edged higher by 7.4 per cent amid flat growth in sales.
Net profit for the 12 months ended Dec 31, 2011, stood at $528 million, up from 2010’s $491 million.
The results were below earnings estimates of $579 million, according to a Bloomberg poll of 15 analysts.
The full-year profit attributable to shareholders translated to earnings per share of 17.28 cents, up from 2010’s 16.21 cents.
Full-year revenue stood pat at $5.99 billion. Sales in the aerospace and electronics segments were stronger but the group saw poorer performance in the land systems and marine divisions.
But cost of sales went down by a slightly quicker rate, lifting gross profit by 3.3 per cent to $1.3 billion for the year.
A ‘benchmarking exercise’ of inventory obsolescence estimates brought its net allowance for inventory obsolescence to $181,000 compared with $27.6 million a year ago.
Net finance costs fell 55.3 per cent to $19.4 million, thanks to foreign exchange gains of $4.83 million. A year ago, the group posted a forex loss of $8.72 million. Interest expenses were also lower.
Revenue from its biggest sales contributor – the aerospace division – inched up 3 per cent to $1.92 billion, with higher revenue from its component/engine repairs and overhaul business as well as engineering and material services offset by lower sales in its aircraft maintenance and modification business. Its revenue contribution stood at 32 per cent of total sales.
Sales from its electronics department rose 7 per cent to $1.48 billion, boosted in part by recorded revenue from its work on the Circle Line and the Bangkok automatic fare collection system projects.
But revenue from its marine sector slid 16 per cent to $876 million, dragged down by lower shipbuilding revenue after a contract for a roll-on/roll-off passenger ferry – ships that have cargo with wheels driven on and off the ship – was terminated.
In profitability terms, only the land systems division recorded lower pre-tax profit for the full year, compared with the previous 12 months.
Pre-tax profit for the sector stood at $108 million, down 5 per cent from a year ago, due mainly to the impact of an ‘unfavourable product mix’ that was partly offset by lower foreign exchange losses and favourable fair value change of embedded derivatives.
Earnings before tax for the aerospace sector rose 6 per cent to $278 million, while pre-tax profit for the electronics sector rose 7 per cent to $137 million.
The group proposed a final dividend of 12.5 cents per share.
Shares of ST Engineering closed two cents higher at $3.08 yesterday.
STEng – Financials
All the data are extracted from the results (please counter-check in case of error),
|
|
FY05 |
FY06 |
FY07 |
FY08 |
FY09 |
FY10 |
FY11 |
|
Revenue |
3,337,895 |
4,485,758 |
5,050,982 |
5,344,515 |
5,547,787 |
5,9844,73 |
5,990,878 |
|
Gross Profit |
716,216 |
1,031,797 |
1,128,274 |
1,156,912 |
1,150,205 |
1,263,451 |
1,304,958 |
|
Operating Profit |
444,343 |
545,761 |
638,715 |
535,993 |
507,826 |
586,683 |
607,672 |
|
PBT |
503,245 |
564,339 |
638,115 |
540,702 |
546,559 |
627,475 |
655,225 |
|
Net Profit |
411,252 |
455,444 |
523,509 |
488,763 |
456,397 |
504,852 |
540,661 |
|
NPM |
12.32% |
10.15% |
10.36% |
9.15% |
8.23% |
8.44% |
9.02% |
|
Cash |
306,328 |
624,723 |
625,827 |
818,925 |
1,513,610 |
1,591,727 |
1,366,452 |
|
Loan – NCL |
4,016 |
272,948 |
9,812 |
289,249 |
1,353,134 |
973,100 |
1,156,437 |
|
Loan – CL |
323,594 |
595,850 |
859,090 |
585,002 |
85,573 |
375,061 |
207,817 |
|
NAV (ct) |
51.20 |
53.10 |
54.70 |
52.70 |
52.09 |
53.38 |
57.79 |
|
EPS (ct) |
13.64 |
15.15 |
16.95 |
15.82 |
14.78 |
16.21 |
17.28 |
|
DPS (ct) |
13.60 |
15.11 |
2 + 14.88 |
3 +12.80 |
3 + 10.28 |
3 + 11.55 |
3 + 12.5 |
Notes :
- All figures in S$,000 unless otherwise stated
- FY is End-Dec
MIIF – AmFraser
9.5% yield. What’s not to like?
No news in the financial results: As mentioned before, the most important quarter for MIIF is 3Q when the bulk of its income flows in from the assets. FY2011 revenues are up 33% to $59.2m, and the adjusted net profit is up 47.4% to $47.9m, both exactly in line.
Real meat is in operational performance at the asset level: Revenue and EBITDA numbers were within 4% of our estimates in general, but the volume and subscriber numbers showed a little more character. For Changshu Xinghua Port (CXP), the logs segment grew by 52% in one year, topping our estimate by 40%.
We were too pessimistic on traffic volumes for Hua Nan Expressway (HNE) due to the detolling of the competing Xinguang Expressway, with actual traffic coming in 2-6% higher than our estimate across all segments. However, management has flagged the risk of a 20% downward revision in the tariffs for Phase I of the expressway, which for conservativeness we have incorporated into 2012F-2026F projections.
Taiwan Broadband Communications’ (TBC) Digital TV segment delivered a terrific 63% growth to 90,632 subscribers, in line with our 90,000 estimate. The Cable TV and Broadband segments also showed in-line growth of 1.4% and 7.5% respectively (See Page 2 for the detailed treatment).
Another 2.75c dividend: We continue to expect MIIF to pay 2.75c every half-year, for a full-year yield of 9.5%. This exceeds the current EPS of 3.8c, but is backed by 9c per share in net cash. EPS is growing at a rapid clip, and should exceed 5.5c by 2014, at which point we forecast dividend growth. We maintain that this 5.5c dividend is sustainable.
Annual revaluation summary: MIIF revalued CXP up by $11.5m, reflecting strong growth in current and forecast volumes across most of its cargo types. HNE’s value was lowered by $17.6m, reflecting the adverse effect of the detolling of Xinguang Expressway and the possible tariff reduction. TBC’s value was raised $40.5m, mostly the revaluation of the newly-acquired 20% stake.
Share buybacks to resume: MIIF suspended its share buybacks prior to releasing the results. We expect buybacks to continue today, supporting the share price.
What’s not to like? Maintain BUY, raise FV to $0.690: Overall, MIIF’s assets have delivered stronger growth than expected. Our valuation methodology remains unchanged – DCF of the individual asset dividends to MIIF, less fund-level expenses, at (rather high) discount rates of 14%-19%. Updating our model with the latest volume numbers, our valuation rises to $0.690. MIIF offers both high sustainable dividends with some capital gains potential. BUY.
MIIF – AmFraser
9.5% yield. What’s not to like?
No news in the financial results: As mentioned before, the most important quarter for MIIF is 3Q when the bulk of its income flows in from the assets. FY2011 revenues are up 33% to $59.2m, and the adjusted net profit is up 47.4% to $47.9m, both exactly in line.
Real meat is in operational performance at the asset level: Revenue and EBITDA numbers were within 4% of our estimates in general, but the volume and subscriber numbers showed a little more character. For Changshu Xinghua Port (CXP), the logs segment grew by 52% in one year, topping our estimate by 40%.
We were too pessimistic on traffic volumes for Hua Nan Expressway (HNE) due to the detolling of the competing Xinguang Expressway, with actual traffic coming in 2-6% higher than our estimate across all segments. However, management has flagged the risk of a 20% downward revision in the tariffs for Phase I of the expressway, which for conservativeness we have incorporated into 2012F-2026F projections.
Taiwan Broadband Communications’ (TBC) Digital TV segment delivered a terrific 63% growth to 90,632 subscribers, in line with our 90,000 estimate. The Cable TV and Broadband segments also showed in-line growth of 1.4% and 7.5% respectively (See Page 2 for the detailed treatment).
Another 2.75c dividend: We continue to expect MIIF to pay 2.75c every half-year, for a full-year yield of 9.5%. This exceeds the current EPS of 3.8c, but is backed by 9c per share in net cash. EPS is growing at a rapid clip, and should exceed 5.5c by 2014, at which point we forecast dividend growth. We maintain that this 5.5c dividend is sustainable.
Annual revaluation summary: MIIF revalued CXP up by $11.5m, reflecting strong growth in current and forecast volumes across most of its cargo types. HNE’s value was lowered by $17.6m, reflecting the adverse effect of the detolling of Xinguang Expressway and the possible tariff reduction. TBC’s value was raised $40.5m, mostly the revaluation of the newly-acquired 20% stake.
Share buybacks to resume: MIIF suspended its share buybacks prior to releasing the results. We expect buybacks to continue today, supporting the share price.
What’s not to like? Maintain BUY, raise FV to $0.690: Overall, MIIF’s assets have delivered stronger growth than expected. Our valuation methodology remains unchanged – DCF of the individual asset dividends to MIIF, less fund-level expenses, at (rather high) discount rates of 14%-19%. Updating our model with the latest volume numbers, our valuation rises to $0.690. MIIF offers both high sustainable dividends with some capital gains potential. BUY.