KUALA LUMPUR: KLCCP Stapled Group’s core net profit for 2022, which rebounded by 17 per cent year-on-year (YoY) to RM748.3 million, is within Affin Hwang Capital’s expectations. <\/p>\n
The company’s core net profit accounted for 107 per cent of the street’s and 102 per cent of its full-year forecasts, Affin Hwang said.<\/p>\n
KLCCP’s net profit was supported by higher revenue contribution from the retail (up 36 per cent), hotel (up 216 per cent) and management services (up 23 per cent) segments. <\/p>\n
“In the retail segment, KLCCP saw sustained footfall with higher tenant sales (versus 2021), mainly contributed by fashion, food and beverage (F&B), leisure and services. <\/p>\n
“In the fourth quarter (Q4) of 2022, KLCCP also booked in its highest tenant sales that surpassed the pre-pandemic level. <\/p>\n
“In the hotel segment, revenue has improved sharply and the business turned earnings before interest and taxes positive during the second half of 2022, driven by higher occupancy and stronger F&B contributions,” it said. <\/p>\n
The firm trimmed its 2023-2024 earnings forecasts by 0.1 per cent after incorporating the full-year 2022 financial statements. <\/p>\n
“We introduce our 2025 earnings forecasts, expecting KLCCP’s 2025 core earnings per share to grow by 8.3 per cent on higher office earnings (step-up rental for PETRONAS Twin Towers),” it said.
\nAffin Hwang maintained a “Buy” call on KLCCP with a higher target price of RM7.80 from RM7.40 previously. <\/p>\n
“We have lowered our cost of equity to 7.6% (from 7.9 per cent) on improved visibility in the recovery of the hospitality segment. <\/p>\n
“We continue to like KLCCP for its defensive earnings, strong balance sheet and 2023 dividend yield of 5.8 per cent,” it added.<\/p>\n