9M net profit surged by 41.0% yoy. MCIL’s 3QFY03/10 net profit of RM53.6m (+142.5% yoy; +55.7% qoq) beat our and consensus expectations with 9MFY10 net profit of RM103.8m (+41.0% yoy) accounting for 114.4% of our and 120.2% of consensus full-year estimates. Key variances were:
1) stronger-than-expected recovery in margins (9M EBIT margin of 15.1% vs. our full-year projection of 9.6%). We believe the key variances were due to on-going cost-control measures as well as lower-than-expected newsprint prices; and
2) a lower-thanexpected effective tax rate of 27% for 9M (vs. our assumption of 30.7%), which we believe reflects the turnaround by some of the operating subsidiaries. As expected, Media Chinese did not declare any dividends for the quarter.
Media Chinese International Berhad : Above Expectations - 01/03/2010
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