Friday, August 20, 2010

Kenanga Research ups PLUS target price to RM5.08

KUALA LUMPUR: Kenanga Investment Research is maintaining its Buy on PLUS EXPRESSWAYS BHD [] with a higher target price at RM5.08 from RM4.63, previously.

'No change to our forecast and 4% traffic growth assumptions for FY10. We upgraded our target price as we roll over our valuation to FY11. Our TP is based on 20% discount to our DCF valuation with WACC at 7.8%,' it said.

Kenanga Research said on Friday, Aug 20 that PLUS's 1H10 core net profit of RM623 million came in within its expectations and consensus.

The toll collection increased by 12% which in line with the traffic growth by 10%.Its newly acquired TERAS and PLUS Helicopter''contributing RM2 million while the overseas projects in India at about RM8 million to the topline.

'The core net profit grew by 11% despite of increase in interest expenses due to issuance of its Islamic securities last year. Interim dividend of 7.5 sen per share declared which is 1 sen higher than the previous year. Overall performance is well within expectation,' it said.


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