Results: Cycle & Carriage Bintang (CNCB MK, Not-rated) – No dividends in 2Q16

Just a quick comment on Cycle & Carriage Bintang’s 2Q16 results released yesterday.

Results: Cycle & Carriage Bintang (CNCB MK, Not-rated) – No dividends in 2Q16

• 1H16 grew only 3% YoY. 2Q16 net profit of MYR20m (+107% QoQ, -10% YoY) lifted 1H16 earnings to MYR29m (+3% YoY). Strong QoQ jump in earnings was attributed mainly to dividend income from Mercedes Benz Malaysia (distributor). Stripping off the MYR11.2m dividend income, 2Q16 core net profit of MYR8.5m is down by 10% QoQ despite revenue growth of 34% in the same period. Margin contraction were mainly due to unfavourable sales mix and higher interest expenses according to the announcement. No dividend was declared (5sen in 1Q16). At MYR3.48 currently, CNCB trades at 7x CY15 EPS.