Booking.com

Booking.com

Favorite Links

Friday, November 28, 2014

IQ Group - Strong Exports Support Growth

Source: http://klse.i3investor.com/blogs/rhb/65247.jsp

IQ’s 1HFY15 (Mar) results beat our estimates, with MYR109m revenue (+21% YoY) and MYR14m net profit (+67% YoY) reaching 59% and 99% of our respective full-year estimates, driven by strong overseas sales and favourable foreign exchange rates. Maintain BUY with a higher TP of MYR2.51 (47.6% upside), pegged to a FY15F P/E of 12x. We raise our FY15 earnings estimate by 29% and introduce our FY16-17 forecasts.

Above expectations. IQ Group’s (IQ) 1HFY15 results were above our expectations, with revenue of MYR109m (+21% YoY) and net profit of MYR14m (+67% YoY) accounting for 59% and 99% of our respective full-year estimates. By segment, both manufacturing and trading divisions recorded higher sales contributions in 1HFY15, up 26% and 20% YoY respectively. The better results were driven by higher export sales and favourable foreign exchange rates.

Interim DPS of 4 sen. IQ proposed an interim dividend of 4 sen per share to reward its shareholders. This is the first dividend payout since FY07 (4 sen per share), suggesting that the company’s performance has improved and it would like to resume its policy of paying dividendsannually.

Maintain BUY with a higher MYR2.51 TP. We believe IQ could do well in FY15 as exports to the US, Europe and Japan markets remain encouraging. We have tweaked our FY15F revenue and net profit forecasts higher by 10% and 29% respectively, to reflect its better performance, and introduce our FY16-17 forecasts. We maintain our BUY call on IQ, with a higher TP of MYR2.51 (from MYR2.03), pegged to a FY15F P/E of 12x – which is within the range of 10-15x P/Es of the consumer stocks (excluding consumer staples) under the coverage of our consumer analyst. As at end-Sep 2014, IQ had MYR18m cash in hand with zero borrowings.

No comments:

Post a Comment