Saturday, September 28, 2013

Tasco : Gradually On The Mend (RHB)

Tasco
Target Price: MYR2.30
Price: MYR2.03
Gradually On The Mend

Tasco’s earnings, which had been pressured by declining exports, have recovered somewhat of late. Thus, we expect its outlook to improve in the near- to mid-term, although we are lowering our FY13F-14F earnings forecasts due to higher fuel costs. Notwithstanding the lower net profits, we lift our call to BUY (from Neutral) with our FV revised to MYR2.30 (from MYR2.10).


• Earnings pressured. Tasco’s 2Q13 core earnings came in lower at MYR5.4m (+26.6% q-o-q; -23.3% y-o-y), which was below our expectations. This was due to its international business division’s weaker performance on lower export volumes. Its domestic business division also faced challenges during this period, as business volumes declined on lower demand and intense competition.

• Export data on the mend. Tasco has been vulnerable to the sluggish export levels, notably from its major Japanese clients. However, the latest export data from the major trading nations have shown encouraging improvement and Japan alone saw exports climbing 14.7% in August (July: +12.2%) – the country’s strongest pace since 2010. With this in mind, we expect Tasco’s operations to begin recovery by year-end.

• Revising earnings to factor in rising fuel cost. Although Tasco will be able to pass-through its higher fuel costs to most of its customers, there will be implementation delays. Thus, we conservatively revise downwards our FY13/FY14 earnings forecasts slightly by 4.4%/2.7%.

• Risks. Prolonged sluggishness in the economy and weak exports could further dampen Tasco’s performance.

• Upgrade to BUY, lifting FV. As the macroeconomic outlook may brighten by year-end, we upgrade Tasco’s FY14F P/E to 8.0x (from 7.0x), which is its historical P/E. This, however, remains below the 10.1x FY14F P/E of its peers. Note, though, that Tasco has greater exposure to the export market, where a sustainable recovery has yet to be seen. Hence, we revise upwards its FV to MYR2.30 (from MYR2.10) and upgrade our call to BUY (from Neutral).




Source/Extract/Excerpts/来源/转贴/摘录: RHB-Research,
Publish date: 25/09/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock