Stock Name: SMRT
Company Name: SMRT CORPORATION LTD
Research House: Phillip Securities
Phillip Securities Research in a May 3 research report says: "Despite the 8.3% growth in revenue, SMRT recorded a slight decline in net profit of $161.1 million for FY2011. The main sources of profit margins erosion came from a 6% increase in staff cost and a 17% increase in energy expense.
"Despite fairly similar average headcounts for both years, staff cost was higher in FY2011 as there was lower jobs credit shield as compared to FY2010. Energy cost was higher due to increased train runs following the commencement of CCL operations in April 2010 and higher average unit energy cost.
"Overall, the results were in line with our expectations of $162.1 million. We used a blended valuation model of DCF and P/E (18.0X FY12e PATMI) to arrive at our target price of $2.22. Expect a total return of 21.2% after incorporating a dividend yield of 4.5%. MAINTAIN BUY."
Company Name: SMRT CORPORATION LTD
Research House: Phillip Securities
Phillip Securities Research in a May 3 research report says: "Despite the 8.3% growth in revenue, SMRT recorded a slight decline in net profit of $161.1 million for FY2011. The main sources of profit margins erosion came from a 6% increase in staff cost and a 17% increase in energy expense.
"Despite fairly similar average headcounts for both years, staff cost was higher in FY2011 as there was lower jobs credit shield as compared to FY2010. Energy cost was higher due to increased train runs following the commencement of CCL operations in April 2010 and higher average unit energy cost.
"Overall, the results were in line with our expectations of $162.1 million. We used a blended valuation model of DCF and P/E (18.0X FY12e PATMI) to arrive at our target price of $2.22. Expect a total return of 21.2% after incorporating a dividend yield of 4.5%. MAINTAIN BUY."
No comments:
Post a Comment