We make no changes to our FY18F-FY20F earnings forecasts and maintain our fair value of RM2.45, based on sum-of-parts valuation. Maintain HOLD. Enra’s 1QFY18 core net profit of RM1.0mil (-24.3% YoY) made up 7% of our full-year forecast and of consensus. We deem this to be in line with expectations, as we expect stronger quarters ahead with bigger contributions from its property development, and oil & gas businesses. Its revenue dropped 39.6% YoY to RM23.9mil. There was no dividend declared, as expected.
Moving forward, we expect the property division to remain as the biggest earnings contributor of the group, with its 93 Great Titchfield Street development in London expected to start contributing its earnings in FY18. Over the long run, we expect its Labuan reclamation and development project to become one of the major contributors to the sales and earnings of the group.
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