RCE Capital : Loan book growth unabated Outperform
4QFY09 Results
- 3QFY03/10 results slightly above expectations due to higher-than-expected margin.
- Continued loan growth – accelerated qoq but yoy slower pace given larger base.
- The recent pay adjustments to the police force could provide impetus to fuel additional loan growth.
- Margin recovered for two consecutive quarters.
- More competition but still double-digit loan growth.
- FY10-12 forecasts have been raised by 6-7% to reflect the better margin in 3Q.
- Fair value raised from RM1.08 to RM1.15 (11x CY10 EPS).
Maintain Outperform.
Fajarbaru : Secures RM70m aqua-culture project in Terengganu Outperform
News Update
- Fajarbaru has been awarded by Blue Archipelago Bhd a RM69.9m contract for earth, infrastructure and
civil works for Phase 1 of an equa-culture project in Setiu, Terengganu.
- This is the first key job Fajarbaru has secured in FY06/10, boosting its outstanding construction orderbook
by 17% to RM481m. Assuming an EBIT margin of 8-10%, the latest contract will fetch a total EBIT of
RM5.6-7.0m over the construction period of 12 months ending Feb 2011.
- No change forecasts that already assume Fajarbaru to secure RM400m worth of new jobs in FY06/10.
- Fair value is RM1.35.
Maintain Outperform.
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