Strategy Update
♦ After three consecutive quarters of positive earnings surprises, the earnings reporting season that has just ended showed that the bulk of the corporate results that we covered were within our (83.5%) as well as market (68.2%) expectations.
♦ Unlike the previous three quarters, there were no significant revisions to our individual company’s earnings numbers during this reporting season (except for Genting Bhd due to positive minority interest caused by exceptional items incurred in Genting S’pore and Genting M’sia), suggesting that major earnings upgrades have already been factored into analysts’ projections and that earnings growth might have peaked in 1Q.
♦ Sequentially, net EPS for FBM KLCI stocks under our coverage recovered to +10.6% qoq in the 1Q, after easing to +4.2% in 4Q09. Yoy, net EPS for FBM KLCI stocks continued to trend up and surged to a high of +35.6% in the 1Q, from +11.7% in 1Q09. The strong surge reflects partly a low base effect, although it points to sustained recovery in corporate earnings.
Economic Highlights - Broad Monetary Aggregate Moderated, But Loan Growth Bounced Back In April - 1/6/2010
No comments:
Post a Comment