This is after an estimated headline net loss of RM276 million in FY2023, that is RM152 million excluding RM124 million in impairment loss on highway development expenditures in FY2023.
“This assumes 3.6% per annum traffic growth in FY2024-FY2026 (FY2023: 5.8%). Based on our estimates, PIBT will remain in net debt in FY2024-FY2026.
“We forecast a net gearing of 3.3x at end-FY2024 (2.9x end-FY2023), rising to 4.5x end-FY2026 as it draws down on Tawarruq financing 2 for committed capital expenditure (estimated at RM420 million),” Maybank IB said in a research note.
The investment bank said PIBT’s trustee manager intends to distribute at least 90% of PIBT’s distributable income on a semi-annual basis.
“For FY2024, the intention is to distribute RM70 million or 6.4 sen per unit,” it said.
It stated that PIBT is an Islamic business trust with a combined toll highway market share of 15.7% by traffic volume in the Klang Valley in 2021.
“The trust group offers exposure to expanding traffic volume amid rising economic activities and urbanisation.
“At the same time, it also offers sustainable and regular distribution to unitholders,” it noted.
PIBT said it provides exposure to an Islamic business trust that has four major toll highway assets in its portfolio, including Ampang-Kuala Lumpur Elevated Highway (AKLEH), Guthrie Corridor Expressway (GCE), Kemuning-Shah Alam Highway (LKSA), and Sistem Lingkaran Lebuhraya Kajang (SILK), all of which are located in the Klang Valley.
“The trust group’s toll assets have an average remaining concession period of 31 years as at Sept 1, 2024.
“As such, there is long-term visibility on future toll revenues and cash flows, which translates into sustainable distribution for unitholders,” said Maybank IB.
It was stated that SILK is the largest contributor to total toll collection at 45% in FY2023, followed by GCE (30%), LKSA (14%), and AKLEH (11%).
Maybank IB initiated coverage on PIBT with a “buy” recommendation and a target price of RM1.13.
As at 2pm, PIBT’s share price was up by 0.5 sen or 0.55% at 91.5 sen, giving the group a market capitalisation of RM1 billion.