NCB’S 1Q core earnings within expectations — RHB Research

KUALA LUMPUR: NCB Holdings Bhd’s (NCB) core earnings of RM33.3 million in the first quarter ended March 31, 2013 are within expectations, says RHB Research.

In a research note yesterday, RHB Research said NCB’s revenue nudged down 4.7 per cent year on year to RM230.9 million, mainly due to lower container throughput handled by Northport for the quarter under review.

It said although its throughput yields had improved by five per cent year on year in the first quarter to RM227.2 per container handled, NCB oontinued to face challenges in the competitive environment as well as uncertainties in the regional container trade.

RHB Research said NCB highlighted that the group had revised the estimated useful lives of certain intangible assets, which came after the extension of its port concession period for the licence and lease of the privatised port services, namely 30 years for Northport and 21 years for

We retain our expectations that the group’s container throughput may tick up by five per cent and eight per cent for 2013 and 2014 respectively, in view of the improving trade outlook in tandem with the heightening global trade activities.

RHB Research

Southpoint.

“We retain our expectations that the group’s container throughput may tick up by five per cent and eight per cent for 2013 and 2014 respectively, in view of the improving trade outlook in tandem with the heightening global trade activities,” it said.

It had maintained its ‘buy’ call on NCB with a fair value of RM5.38 per share. — Bernama