Wednesday, 15 February 2012

RHB Research expects RCE 4Q earnings to weaken

KUALA LUMPUR (Feb 15): RHB Research Institute said RCE’s 3QFY03/12 net profit of RM24.8 million (down 24.4% on-year; down 7.8% on-quarter) was in line with its and consensus expectations.

It said on Wednesday that this was despite 9MFY12 net profit of RM84.9 million (down 3.2% on-year) accounted for 83.5%-84.5% of its and consensus full-year net profit forecasts.

“We expect 4Q11 to weaken further amid a loan book that continues to contract and in the absence of further gains from sale of AMFIRST REITS [] now that RCE has fully disposed off its holdings in the REIT,” it said.

RHB Research said its fair value of 57 sen was unchanged and based on target CY12 PER to 4.5 times. Market Perform call maintained.

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