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Malakoff Corporation 2Q15 Earnings Fall 27%
Malaysia Daily Bulletin | 24 August 2015
  • Malakoff Corporation reported a 26.9 percent decline in net profit for 2Q15 to RM86.3 million, in tandem with the 11.6 percent drop in turnover to RM1.3 billion due to lower capacity factor registered by all gas fired power plants.
  • The absence of fair valuation gains from the acquisition of the remaining 75 percent equity in Port Dickson Power recorded in 2Q14 also impacted 2Q15 bottom line.
  • For the six-month period, the group actually posted a 57.5 percent jump in earnings to RM190.2 million, despite a 2.3 percent contraction in revenue. The better performance was driven by higher contribution from its Tanjung Bin power plant and reduction in interest expense.

Significance: Despite the weaker quarter, Affin Hwang Capital has upgraded the stock to a ‘Buy’ call, with a target price of RM1.92, based on higher expectations in its second half as Tanjung Bin has returned to full capacity.

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