Boustead’s 1Q17 earnings in line despite seasonally slower quarter

KUCHING: Boustead Holdings Bhd’s ( Boustead) first quarter of 2017 (1Q17) earnings came in within expectations on a seasonally slower quarter.

In a filing on Bursa Malaysia, Boustead revealed that the group’s profit after taxation of RM40.9 million for the current quarter ended March 31, 2017 was better than corresponding period last year’s profit of RM9.5 million.

Bousted’s 1Q17 profit after tax and minority interest (PATAMI) came in at RM4.2 million, compared to the research arm of Kenanga Investment Bank Bhd’s (Kenanga Research) full-year forecast of RM69 million.

“We consider the results to be within our expectation on a seasonally slower quarter,” it said.

A first single- tier interim dividend per share (DPS) of 2.5 sen was declared which was below Kenanga Research’s expectation.

The research arm conservatively cut its FY17 and FY18 DPS assumption to 16 sen per share, from 19 sen per share previously.

Kenanga Research expected plantation earnings to anchor the bulk of earnings, and since 91 per cent of Boustead’s plantation estates are already matured, will hinge largely on crude palm oil (CPO) price movements of which outlook over the short-term looks positive.

The research arm also expected the trading and manufacturing as well as pharmaceutical divisions to show pedestrian growth and deliver sustainable recurring incomes.

“The trading and manufacturing division’s growth will be underpinned by its captive market from Boustead Petroleum MarketingSdnBhd,whichconducts marketing and distribution of petroleum products under the BHPetrol retailing brand.