Above; maintain OUTPERFORM. MCIL’s FY3/11 core net profit was 18% above our forecast and 2% above consensus. We had underestimated EBIT margin which came in at 16.2% compared to our forecast of 13% due to weaker-than-expected impact from salary adjustments. We now raise our FY12-13 EPS forecasts by 5-8% to reflect the stronger ad volume and impact of salary adjustments. As the 5.9 sen total DPS for the year is higher than our estimate of 5 sen, we now raise our DPS forecasts by 28-51%. The stock remains an OUTPERFORM with a higher target price of RM1.61 (RM1.52 previously), pegged to an unchanged CY12 P/E of 14.5x. MCIL remains one of our top sector picks. Potential re-rating catalysts include (i) this results outperformance, and (ii) continued growth of ad volume.
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