Genting Plant Q2 profit seen flat (2291)

Genting Plantation Bhd's (GENP) net profit for the second quarter ended
June 30, 2012 is expected to be flat quarter-on-quarter at RM80
million-RM90 million, says Maybank Investment Bank (Maybank IB).

In
a research note today, the bank said the expected flattish results
followed disappointing fresh fruit bunches (FFB) output and stable spot
of crude palm oil average selling price.

"As a result, the
first-half results would amount to just about 35 per cent of our
previous financial year 2012 (FY12) net profit forecast.

"Ahead
of its results release, we cut our FY12 net profit estimate by 12 per
cent to reflect no growth in FFB production for 2012," it said.

Maybank
IB said production has entered a seasonally stronger period and the
bank expected earnings to play significant catch-up in second half of
2012.

"GENP has said unlike in the past four years whereby the
first- and second-half production ratio averaged 45:55 per cent, the
ratio in 2012 will be unique at around 40-42 per cent:58-60 per cent,"
it said.

The bank said the contributions from the property
sector would be small but growing as the company continued to enjoy
robust sales for its Johor properties in second quarter of this year
with positive spillover effect from its Johor Premium Outlet.

Maybank IB has maintained its 'hold' call on the company with an unchanged target price of RM9.10. -- Bernama