KUALA LUMPUR (Feb 18): Investors should not expect any negative surprises when MPHB Capital Bhd announce its 4Q13 earnings this Feb 25, according to Maybank IB Research.

In a note today, the research house said that it expects core net profits to be 9% lower year-on-year (y-o-y) for the company.

“We expect core net profit to be 9% lower y-o-y on the loss of contributions from AirAsia’s high margin personal accident business during the year, said analyst Desmond Ch’ng of Maybank IB.

“The uplift could come from the recognition of about RM5 million from its Minden Heights property project that we have not factored in yet,” he added.

In addition, MPHB is currently pending the sale completion of its Balik Pulau land and strategic partnership at Multi-Purpose Insurans (MPI).

Maybank IB has maintained its Buy rating on MPHB at RM1.72 with a target priece of RM2.12 and said it remained upbeat on MPHB Capital which it said should be viewed as an asset, rather than earnings, play.

“Pending developments (profit from Minden Heights, sale of Balik Pulau land and sale of MPI stake) could lift our sum-of-parts valuation by 25% to RM2.65,” Ch’ng said.