Tayrona Financial* Research Report – 2Q18 Results Update
Excerpt from report:
Overweight
Current Price S$0.110
Fair Value S$0.300
Up/ (downside) 131%
Maintains Profitability Amidst Challenging Environment
Expenses fell following cost reduction efforts. To compensate for the lacklustre performance of 2Q18, the group further reduced costs with distribution and administrative expenses falling by a combined RM1.4m or 18.3% year-on-year. Share of profit from associates also turned positive, following marginal losses last year.
Long term outlook for Sarawak remains intact. …Sarawak looks set to enjoy more state revenue as the Federal government cedes more oil royalties to the state. According to reports, Sarawak will receive oil royalties of 5% of gross value while being entitled to additional royalties of 20% of net profit from state oil producing activities. Hence, we are somewhat more optimistic of Sarawak’s longer-term economic outlook than before.
* NRA Capital has been renamed Tayrona Financial Pte Ltd in 2018.
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