KUALA LUMPUR (Nov 4): RHB Research Institute is maintaining its market perform on Quill Capita. The indicative fair value is maintained at RM1.25 based on weighted average target yield of 6.9% on its FY12 dividend per unit forecast of 8.7 sen.
It said on Friday Quill Capita’s 3Q11 realised net income of RM9.4 million (+8.3% on-year; +2.5% on-quarter) came in within its and consensus estimates.
Sequential gross revenue growth was flattish, and interest expense was higher (+16.1% on-year; +15.4% on-quarter) during the period mainly due to the write-off of balance of the amortisation cost relating to its RM80 million term loan facilities.
“However, the lower operating expenses in 3Q11 have offset the higher finance costs, leading to an overall increase in the realised net profit margins. As expected, no DPU was declared during the period as Quill Capita declares its dividends semi-annually,” it said.
It said on Friday Quill Capita’s 3Q11 realised net income of RM9.4 million (+8.3% on-year; +2.5% on-quarter) came in within its and consensus estimates.
Sequential gross revenue growth was flattish, and interest expense was higher (+16.1% on-year; +15.4% on-quarter) during the period mainly due to the write-off of balance of the amortisation cost relating to its RM80 million term loan facilities.
“However, the lower operating expenses in 3Q11 have offset the higher finance costs, leading to an overall increase in the realised net profit margins. As expected, no DPU was declared during the period as Quill Capita declares its dividends semi-annually,” it said.
