Wednesday, April 21, 2010

Quill Capita Berhad : Lower Occupancy Risk In 2010 - 21/04/2010

Within expectations. Excluding RM0.4m gain from re-measurement of fair value of interest rate swaps, Quill Capita reported 1QFY12/10 normalised net profit of RM7.5m (+1.6% yoy, +1.2% qoq). This accounted for 21-22% of our and consensus estimates. We consider this to be in line with our expectation as we expect earnings to pick up in the second half in the absence of lumpy utilities costs the company normally recognises in the early part of the year. Yoy earnings growth of 1.6% was mainly driven by higher rental rates for its existing buildings as well as lower borrowings cost after the refinancing of short-term debt to a 5-year term loan facilities (currently 96% of the company debts are on fixed rate). Meanwhile, gearing ratio increased slightly from 0.37x as at end-4Q09 to 0.38x as at end-1Q10. No dividend was declared during the quarter.

Quill Capita Berhad : Lower Occupancy Risk In 2010 -21/04/2010

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