Aug 2007 Financial News

AMCL Releases Half Year Results

Aug 13, 2007

Results for the Half Year Ended June 30, 2007

For the Half Year Ended June 30, 2007, ANSA McAL Limited (AMCL) reported Earnings Per Share (EPS) of $1.37, up an outstanding 35.64 per cent or $0.36 on the corresponding Half Year in FY06. Q207 on Q206, the Company’s EPS was also up significantly, from $0.49 to $0.70.

Third Party Turnover for the period under review amounted to $2.31 billion, up a significant 19.37 per cent or $375.20 million on the comparable period in the last financial year. Q207 on Q206, this figure grew by 17.78 per cent or $181.68 million from $1.02 billion to $1.20 billion. The Group’s Operating Income for the Half Year was $418.64 million, up a substantial 32.89 per cent or $103.62 million from $315.02 million on the same period in FY06. Q207 on Q206, this figure was also up significantly from $158.32 million to $216.67 million.

For the Half Year period under review Finance Costs totaled $58.27 million and was down 8.67 per cent or $5.53 million on HY06. Q207 on Q206, Finance Costs fell 15.34 per cent or $5.31 million from $34.59 million to $29.29 million.

Share of Results of Associated Companies for HY07 was $5.42 million, down a substantial 57.01 per cent or $7.18 million on the corresponding period in the last financial year. Q207 on Q206, this figure was down 40.67 per cent or $2.38 million from $5.84 million to $3.47 million. The Group’s Profit Before Taxation ended the period at $365.79 million compared to $263.82 million for HY06, a noteworthy increase of 38.65 per cent.

The Effective Tax Rate for the period under review was 24.42 per cent compared to a Tax Rate of 17.31 per cent for the same period in FY06. As a result, Profit After Taxation stood at $276.46 million, up 26.74 per cent or $58.32 million on the corresponding figure for HY06.

The Directors were pleased to announce that the results for the Half Year Ended June 30, 2007 were the best half year results for the Company to date. Also, they are confident that the trend will continue into the third quarter of 2007.

The Board has recommended an interim dividend of 30 cents per share (2006-25 cents) payable on November 16, 2007 to shareholders on the register on November 2, 2007.

AMCL last closed at a price of $47.99 on the local exchange. In light of the current results and forward looking statements of the Directors, we are revising our forecasted EPS upwards to $3.50. Using this revised forecast and the current price, this share is trading at a price to earnings multiple of 13.71 times. Additionally, using a multiple of 15 times and the revised forecasted EPS, this share is has an expected return of approximately 9 per cent on the current price or a target price of $52.50. Thus, we continue to recommend a BUY on this share.


Gia Singh
WISE Equity Research Team