Hot Stock Stellar performance in 2Q lifts Tasek Corp

by **Cals** Thu 07 Aug 2014, 00:52

Hot Stock Stellar performance in 2Q lifts Tasek Corp

Business & Markets 2014

Written by Charlotte Chong of theedgemalaysia.com

Wednesday, 06 August 2014 11:27

KUALA LUMPUR (Aug 6): Tasek Corporation Bhd was among the top gainers at mid-morning on Wednesday on the back of its stellar performance in its second financial quarter ended June 30, which was announced yesterday.

At 10:29 am, it has climbed 3.09% or 46 sen to RM15.36 with some 186,000 shares traded. The counter earlier rose to a high of RM15.38.

The cement maker announced a net profit of RM31.1 million in its second quarter ended June 30, an increase of 42.5% from RM21.82 million in the same quarter last year.

It has also declared a dividend of 40 sen, to be paid on Sept 9 this year, which was eight sen higher compared with 32 sen in the corresponding quarter last year.

Its revenue came in 20.78% higher at RM171.5 million, compared with RM142 million a year earlier. Earnings per share expanded to 25.6 sen, from 17.96 sen earlier.

Tasek Corp explained in an announcement with Bursa Malaysia yesterday that the higher revenue was mainly due to higher demand for cement locally.

For the six months ended June 30, its net profit climbed 28.7% year-on-year to RM56.02 million, from RM43.53 million in the same period in 2013. Revenue grew 20.25% to RM334.4 million, from RM278.09 million earlier.

It expects the group's performance to “continue to be positive” in 3QFY14.

Meanwhile, in his review today, CIMB Research analyst Sharizan Rosely said that although Tasek's annualised 1H14 core net profit came in at 109% of his forecast, he considered it to be broadly in line as he expected a normalisation of tax rates and sustained losses for the ready-mix segment in 2H.

“The main positive was the higher-than-expected dividends, which should be the key support for the share price amid a still-competitive industry environment,” said Sharizan.

Sharizan maintained his “hold” rating on Tasek at RM14.92 with a lower target price of RM15.30 (from RM16.44) and recommended a switch to contractors.