Comments On MMC Earnings

I just saw Business Times article on MMC earnings.

• Power, ports drive MMC profit jump
  
  Published: 2010/05/26
  
  MMC Corp Bhd (2194), a power producer and port operator, said its first quarter net profit rose by a tenth, driven by its power and logistics businesses.
  
  The group, controlled by Tan Sri Syed Mokhtar Al-Bukhary, expects to do better for the year to December 31 due to a better Malaysian economy. It made a net profit of RM236.7 million for 2009.
  
  MMC made a net profit of RM34.4 million for the quarter to March 31. Revenue was up 8.2 per cent to RM2.1 billion. Its pre-tax profit jumped by almost a third to RM210.4 million.
  
  The group's energy and utilities division, which posted a revenue of RM1.7 billion in the quarter, reported improved results. Its share of the group's pre-tax profit rose by 19 per cent.
  This was "mainly driven by better performance of Malakoff Corp Bhd and higher volume gas sold by Gas Malaysia Sdn Bhd," MMC said in a statement to Bursa Malaysia.
  
  Its transport and logistics division's share of pre-tax profit surged 75 per cent due to higher throughput volume from port business, following the global economic recovery.
  
  However, there was lower contribution from its engineering and construction division due to the lower contribution from the double-track railway project. This is due to revisions in the overall margin, MMC said.
  
  Shares of MMC fell 1.3 per cent to close at RM2.26 yesterday.

It is sounding good eh?

Then I look more carefully.

That one line "It made a net profit of RM236.7 million for 2009." made me curious.

Last year, it made 236.7 mil. Now the first quarter it only made 34.4 million. At this rate, surely MMC would make much less money.

Time to do some digging. :D

Feb 2010: Quarterly rpt on consolidated results for the financial period ended 31/12/2009. MMC made 107.7 million.

Nov 2009: Quarterly rpt on consolidated results for the financial period ended 30/9/2009. MMC made 90.534 million.

Doh!

MMC said it made only 34.4 million!

Then I realised something..... hey... Mr. OSK, did write something on MMC and I blogged on it. OSK's What If Blue Sky Valuation! LOL! the report was written by Head of research, himself, Chris Eng! Hello Is The Stock Market Heading For Better Times Or .... Not???

Hmm... my mind started racing. LOL!

Seriously... LOL!

I was so excited... cos...I forgot how OSK made their valuation on MMC already and I was wondering how is MMC earnings compared to OSK's forecast made.

Oh my!!!!!!!!!!!!!!!!!

Quote:

• While we are conservatively sticking to our earnings forecast for now

Chris Eng's conservative forecast earnings for MMC Corp was rm 424.2 million!!!!!!

Come lah.. how can this be considered conservative when the earnings forecast was assumed to grow at 79.3% this year!!!!!!!!!!

Does earnings grow so easily????

79.3%!

LOL!

Oh... MMC only earned 34.4 million!!!!!!!!!!!!!!!

How lah?