Thursday, August 15, 2013

Pan-United

Pan-United: 2Q13 net profit tumbled 24% y/y to $10m despite revenue improvement of 5% to $190m. Consequently, group recorded 1H13 net profit of $20.3m (-11%) and revenue of $357m (+4%). The discouraging earnings were due to a $2.2m provision for doubtful debt in 2Q13 due to its exposure to Alpine Bau GmbH, which filed for insolvency in the quarter. Further, there was a $2.2m absence of gain in vessel disposal which was recorded in 2Q12. Otherwise, 1H13 earnings would be 10% higher y/y. For 1H13, revenue was mainly driven by its basic building resources (BBR) division. This was however, offset by lower trading activities from the shipping division. Its port division remained stable, with healthy levels in both revenue and cargo volume. Going forward, sales volume from the BBR segment is expected to be maintained, underpinned by the high level of construction activity in Singapore. On the port segment, the acquisition of an additional 34.2% interest in Changshu Xinghua Port is still underway. This will increase its total stake to 85.5% as the group pursues to grow its port division business. Management is also focused on improving vessel utilisation and trading activities for its shipping division. An interim dividend of 1.5cents for 1H13 was maintained y/y. CIMB maintains NEUTRAL with TP $0.90.

No comments:

Post a Comment