The research house said on Thursday these six companies out of the 14 results beat its estimates while two were below and six others in line.
Kenanga, which has an Outperform for TM and target price (TP) of RM6.80, said the telco’s FY16 topped its estimates slightly by 5% owing to lower taxation in 4Q16 as a result of the last mile broadband incentive.
“Nonetheless, we trimmed FY17E by 5% after reviewing some of our assumptions on management’s latest guidance. Still OP with lower target price of RM6.80 from RM6.98,” it said.
As for Genting Plantations (market perform, TP RM12.40), the FY16 beat house/street’s expectations by big margins of 19%/13% owing to higher crude palm oil and palm kernel CPO prices by 24%/60% as production softened which saw 4Q16 earnings soaring 36% sequentially to RM132.7mil.
“But 1Q17 is expected to be mixed as the upbeat upstream business will be offset by start-up cost for downstream activities on new refinery. No changes in MP/TP: RM12.40 estimates,” it said.
Kenanga Research said CBIP (MP; TP RM2.15) FY16 also beat its estimates by 11% due to better plantation contribution and higher than expected RSPV segment margins.
“Nonetheless, we keep our rating and estimate unchanged,” it said.
As for Lafarge, (Underperform; TP RM6.06) the research house said the FY16 came above its estimates by 37% owing mainly to lower taxation arising from reinvestment allowances.
“With outlook remaining cautious, we keep our Underperform with TP RM6.06 and estimates unchanged,” it said.
It said Oldtown (Outperform; TP RM2.11) 9M17 earnings, which jumped 50%, topped expectations on export-driven margin expansion.
“Pending briefing today, we keep our rating and estimates unchanged for now,” it said.
As for Genting Bhd, (Outperform; TP RM9.14), it said the group’s Singapore unit, Genting Singapore (Not Rated) reported upbeat FY16 results with the first recovery in VIP business volume in more than two years.
“But the sustainability is still too early to conclude as business remains challenging with economic condition still not favourable. Keeping Genting’s rating/estimates unchanged for now, pending its 4Q16 results release this evening,” it said.
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