UOBKayhian on 25 Feb 2014
FY14F PE (x): 15.4
FY15F PE (x): 14.5
Above expectations on tax reported a net profit of S$555.7m (+3% yoy) for 2013. This
was above our forecast of S$520m (consensus: S$526m), primarily due to a tax writeback
of S$33.2m in 4Q13. Effective tax for 2013 was only 11.5%. The tax write-back was
mainly attributable to recognition of tax incentives. Excluding this, 2013 results would
have been within expectations. Pre-tax profit of S$665m for 2013 was spot on with our
forecast.
Cutting target price by 8%. We reduce our target price from S$4.60 to S$4.23 in view of
our lower earnings forecasts. We roll forward our valuation by one year and peg our
target price at 2015 PE of 15x. We maintain our HOLD recommendation on SMM.
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