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Categories
| RHB Research raises fair value for PLUS to RM4.13 |
| Business & Market 2009 | |||
| Written by Joseph Chin | |||
| Friday, 30 October 2009 11:40 | |||
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The research house said on Friday, Oct 30 that during a recent visit, PLUS hinted that it is likely to raise its core expressways’ traffic volume growth rate guidance from 3-4% to above 5% in the coming quarterly results, due to strong year-to-date traffic volume growth of 6.4%. RHB Research said the migration of accounting standards to IFRIC 12, if this happens, would require concessionaires including PLUS to switch amortisation method from revenue-based to either straight-line method or volume-based method and exclude concession assets as part of the tangible assets. However, the research house said PLUS felt that the change in accounting treatment is unlikely to come in soon. In any case, this will not affect our DCF-derived NPV for PLUS, given that amortisation expense is a non-cash item. "PLUS believes that Khazanah, which currently owns 60.6% is unlikely to further pare down its stake," it said. RHB Research said it was raising FY12/09 net profit forecast by 1.2% to reflect an one percentage point rise in our FY12/09 traffic volume growth rate assumption at PLUS’s core expressways that more than offset higher depreciation and amortisation expenses. However, the FY12/10 net profit forecast is lowered by 1.6% to reflect higher depreciation and amortisation expenses.
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