Proton : 1QFY03/10 back to black Outperform
1QFY10 Results
- 1QFY3/10 result was above expectation, with net profit of RM54.6m vs. our full year projection of RM8.9m profit and consensus net loss of RM60.4m. The significant increase in profitability arises from the successful roll-out of Exora.
- Topline grew by 8.4% yoy although overall sales volume dropped slightly by 3.8% yoy. Qoq, topline improved by 32.1%, in line with the increase in sales volume of 25.7% qoq. EBIT margin recovered to 3.5% from loss in 4Q09.
- We maintain our FY10-11 TIV projection for Proton. However, we have revised down the average cost per car by 12% for FY10 on the back of: 1) better product mix; 2) higher economies of scale; and 3) cost savings and efficiency increase from streamlining operations. This has boosted our FY10 EPS projection from 1.6 sen to 29.3 sen. However, we remain cautious over inflationary pressures amid economic recovery and expect our average cost per car in FY11 to grow by 7% yoy. Consequently, our FY11 EPS projection has been trimmed by 14% to 39.3 sen.
- Based on 1QFY10 assets position, we have revised up Proton’s valuation to RM3.79 (vs. RM3.64 previously) on a stripped down book value basis. Maintain Outperform.
19/9/2009
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