Result note - Boosted by stronger A$ - by Germaine Khong
2Q10 core net profit of S$58.2m (+1.6% yoy) was broadly in line with our estimate (S$58.3m) and consensus, accounting for 26% of our full-year estimates. 2Q10 group revenue was up 4.1% yoy to $789.3m thanks to growth in most business segments. Revenue growth was also boosted partially by a positive forex translation effect ($15.2m) thanks to a stronger A$, offset partially by weaker οΎ£ and RMB. We maintain our earnings estimates. Our target price rises from S$1.64 to S$1.83 (WACC: 10.4%, terminal growth: 2%), after removing a 10% discount to our DCF valuation as we believe that currency risks have been priced in. Maintain Outperform on the back of
OUTPERFORM - Maintained, S$1.55 - Tgt. S$1.83, Land Transport
Source: CIMB
