Plus Q408

Robust 7.7% 07 traffic growth — This bumped FY07 net profit to RM1,247m (+13%). Excluding RM70m negative goodwill on the Linkedua acquisition. The final 8 sen tax-exempt dividend takes the full yeartotal to 14 sen (4% net yield; 56% net payout ratio). The company maintainsguidance for minimum 12% DPS growth in 08.

Besides,Newly acquired Linkedua and ELITE also performed well — 07 traffic growth accelerated to 11.9% and 6.6% respectively (06: 4.4% and 2.7%). Their contribution to PLUS’s 07 EPS was minimal as the acquisitions were completed on Dec 18.

 Clarity on implications of single-tier tax system would be appreciated — The government compensates PLUS via tax rebates on dividends that would have been taxable under the current imputation tax system. The single-tier system negates this benefit. Management is still unable to articulate its proposal for alternative compensation under this new regime.