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Saturday, February 28, 2015

Heng Huat: Slowly But Surely? - Bursa Dummy

Friday, 27 February 2015 
 
HHGroup FY14Q4 Financial Result
 
HHG (RM mil)FY14Q4FY14Q3FY14Q2FY14Q1FY13Q4
Revenue23.223.124.121.323.1
Gross Profit8.810.410.49.79.5
Gross%37.945.043.245.541.1
PBT3.52.33.73.83.5
PBT%15.19.915.217.615.2
PATAMI3.41.22.73.02.4
      
Biomass Rev18.118.619.716.718.2
Mattress Rev9.89.19.29.110.1
Biomass OP3.64.34.23.53.9
Mattress OP-0.1-0.1-0.20.30.2
      
Total Equity68.364.843.140.437.3
Total Assets109.8110.595.390.589.0
Trade Receivables22.319.721.419.219.4
Inventories5.96.35.44.64.2
Cash15.218.82.62.41.4
      
Total Liabilities36.842.24947.449.1
Trade Payables11.29.211.49.411.2
ST Borrowings9.612.115.515.313.8
LT Borrowings15.319.020.521.423.0
      
Net Cash Flow13.016.60.40.20.3
Operation13.58.76.52.611.3
Investment-7.7-7.5-5.1-1.8-7.7
Financing7.315.5-1.1-0.7-3.2
      
EPS1.670.641.691.911.52
NAS0.380.380.270.250.23
D/E Ratio0.140.190.770.850.95
 
 
Heng Huat's revenue in FY14Q4 is rather flat. Gross profit margin drops due to higher raw material price for biomass segment but lower admin & distribution expenses make the PBT comparable to previous quarters.
 
Excluding the listing expense of RM1.87mil in Q3, FY14Q3 PBT is actually RM4.2mil. So current Q4 PBT of RM3.5mil is a bit of disappointment to me.
 
Tax income registered in Q4 gives Heng Huat its record high quarterly PATAMI of RM3.4mil.
 
 
HHG (RM mil)FY14FY13
Revenue91.773.7
Revenue growth %24.6 
Gross Profit39.232.0
Gross%42.743.4
PBT13.211.4
PBT%14.415.5
PATAMI10.49.7
PATAMI growth %7.2 
   
EPS5.796.11
NTA0.380.23
 
 
Anyway, full year FY14 result is still commendable with revenue grows 24.6% and PATAMI grows 7.2%.
 
The better results are contributed by better demand and selling price for its biomass products esp oil palm EFB fiber from China.

Lesser growth in profit is due to decrease in product margin, higher transportation cost and the one-off listing expense mentioned earlier.
 
Tax paid in FY14 is just 3%, due to many of its products granted pioneer status with tax exemption.
 
 
 
 
Net debt/equity ratio improves substantially after IPO and further drops to 0.14x in the end of FY14.
 
Heng Huat latest geotextile product palm fiber mats are fully sold since launched. It currently only has one production line with production capacity of 100 pieces per month. It plans to set up another line in Q1 of FY15.
 
The palm fiber mats can be used in construction and plantation sector to prevent soil erosion. Heng Huat highlighted that plantation players can enjoy a production cost saving of more than 2 times by using the palm fiber mats.
 
 
       Palm Fiber Mat
 
 
Last year Heng Huat bought land in Gua Musang to build a new factory that will increase its oil palm fiber production capacity. Its construction will only start in Q3 of 2015.
 
I think Heng Huat still has room to grow, albeit slow. 
 
If not because of the one-off listing expense, Heng Huat should be able to achieve PATAMI of RM12mil in FY14. 
 
With total shares of 205.8mil, EPS will be 5.8sen. So I'll keep my target price at 58sen base on PE of 10x.
 
Heng Huat might be one of the few companies in ACE market who shows good profitability and awaiting to be transferred to main board.
http://bursadummy.blogspot.com/2015/02/heng-huat-slowly-but-surely.html

Friday, February 27, 2015

(Icon8888) HIL Industries - High Growth, Cash Rich, Undervalued

HIL Industries Berhad manufactures and sells industrial and domestic molded plastic products in Malaysia and the People’s Republic of China. It operates through two principal segments: Manufacturing and Property Development.
The company offers various services, including design and development, mold and dies fabrication, injection molding, in mold decoration, spray painting, silk screen and tempo printing, ultra sonic welding, digital printing, surface decoration, assembly, assembly machine fabrication, and blow molding.
It is also involved in the development of residential, commercial, and light industrial properties.
The company was founded in 1969 and is headquartered in Shah Alam, Malaysia.

HIL and A&M Realty has same major shareholder.

Quarter Result:
F.Y.QuarterRevenue ('000)Profit before Tax ('000)Profit Attb. to SH ('000)EPS (Cent)NAPS
2014-12-312014-12-3142,49810,1887,7372.801.0500
2014-12-312014-09-3037,3107,2635,2461.901.0200
2014-12-312014-06-3032,3455,5754,1381.501.0100
2014-12-312014-03-3124,2523,5922,5920.941.0000
2013-12-312013-12-3123,6972,8982,1110.76-
2013-12-312013-09-3021,1221,6547390.270.9800
2013-12-312013-06-3020,2561,5209390.340.9800
2013-12-312013-03-3116,575-554-1,002-0.360.9700

The group has strong balance sheets. It has net assets of RM292 mil, ZERO borrowings and cash of RM108.4 mil. Based on 277 mil shares, cash per share is RM0.39, repesenting 44% of existing price of RM0.88.


Since early 2014, the group's earnings has been growing at leaps and bounce. Manufacturing and property development are the major contributors.

(RM mil)Mac 13Jun 13Sep 13Dec 13Mac 14Jun 14Sep 14Dec 14FY2013FY2014
           
Revenue16.720.121.123.724.332.337.342.581.6136.4
> Manufacturing16.119.920.623.323.932.025.726.179.9107.7
> Prop development0.50.50.50.60.50.411.716.62.129.2
           
PBT(0.6)1.51.72.93.65.67.310.25.526.7
> Manufacturing(0.8)1.21.42.63.45.31.92.54.413.1 *
> Prop development0.30.30.20.40.20.35.4 ^7.61.213.5 *
           
Net profit(1.1)0.90.72.12.64.15.27.72.619.6
           
shares (mil) 279279279279279279279279279279
EPS (sen)(0.4)0.30.30.80.91.51.92.80.97.0
           
PBT margin (%)(3.6)7.57.812.214.817.319.524.06.719.5
> Manufacturing(5.0)6.06.811.214.216.67.49.65.512.2
> Prop development60.060.040.072.740.075.046.2 #45.858.546.2

^ Since September 2014 quarter, property development has emerged as a maor earnings contributor.
# Property development profit margin is high, probably due to low land cost
* During FY2014, manufacturing and property development contributed equally to earnings. However, going forward, property development should play a more important role as the group books in further profit

Despite overall industry slowing down, the group remained saguine about the prospects of their property projects :-



Concluding Remarks

(a) The group has strong balance sheets with net cash of RM108.4 mil. Generous dividend payout in the future ?

(b) High property development profit margin propbably due to low land cost.
Despite making significant contribution to net profit, total revenue booked in over past 2 quarters are only RM29 mil.
Unfortunately I am not able to find out the GDV for the group's existing projects. But if margin is so high, impact to future earnings can be very huge.

For illustration purpose : based on assumption that total GDV is RM200 mil (a very conservative assumptions nowadays for property projects in Klang Valley). Remaining unbooked sales would be RM200 mil less RM29 mil = RM171 mil. Based on PBT margin of 46.2%, remaining PBT to be booked in is RM79 mil ? Net profit = RM59 mil ?

If that is the case, earnings over next one to two years looked pretty secured ?

KSL ends FY14 with record profit of RM340 mil

KUALA LUMPUR (Feb 27): Johor-based property developer KSL Holdings Bhd has reported a net profit of RM129.8 million or 24.85 sen a share in the fourth quarter ended Dec 31, 2014 (4QFY14), from a loss of RM1.4 million previously.

Revenue also came in 46% higher at RM166.6 million, against RM114.1 million previously.

The group’s better performance in 4QFY14 was largely attributed to higher profit margin from favourable product mix and fair value gain amounting to RM88.2 million for its investment properties.

In addition, the loss in the previous year’s same quarter was impacted by a RM13 million deferred taxation for Real Properties Gain Tax.

For the full FY14, KSL reported a record net profit of RM340.2 million or 80.65 sen a share, which is 87.4% higher than RM181.5 million a year ago. Meanwhile, annual revenue surged 17.8% to RM801 million, from RM680 million in 2013.

“Our sturdy FY14 performance is a testament to our successful business strategy of growing both our property development and property investment segments, which noted healthy double-digit growth in the year,” said Ku Hwa Seng, chairman of KSL.

“With our pipeline property development launches of more than RM6 billion in gross development value (GDV) in the next five years, and continued marketing initiatives planned for the year, we are positive of sustaining our growth momentum, going forward,” he added.

KSL said its revenue from the property development segment rose 18.4% to RM643.1 million in FY14, against RM542.9 million in the previous financial year, on the back of sustained demand for affordable housing.

At the same time, revenue from property investments, led by the group’s integrated KSL City Mall and Hotel, rose 14.8% to RM154.6 million, on higher yield and patronage. Revenue from investment properties currently constitutes 19.3% of group revenue of RM801.2 million.

KSL has proposed a final single-tier dividend of 5 sen per share in respect of FY14, subject to shareholders’ approval in the upcoming Annual General Meeting. Existing shareholders can also opt to reinvest the final dividend under the Dividend Reinvestment Plan.

Together with the earlier-paid interim dividend of 5 sen per share, KSL has declared total dividends of 10 sen per share in respect of FY14.

According to KSL, the group’s ongoing developments on approximately 100 acres of land are worth a total GDV of RM3 billion, to last till 2017. Most of the projects are in Johor and Klang Valley.

Its pipeline projects from the balance land bank of 2,100 acres, have an estimated GDV of no less than RM30 billion in Johor and Klang Valley, set to sustain the group for at least the next 15 years.

KSL (fundamental: 2.6; valuation: 0.6) closed 16 sen or 6.81% lower at RM2.19, with a market capitalisation of RM2.22 billion.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

Mudajaya 4Q in red, full year loss at RM70m on weaker construction segment

KUALA LUMPUR (Feb 27): Construction outfit Mudajaya Group Bhd registered a net loss of RM99.71 million in its fourth quarter ended December 31, 2014 (4QFY14) versus a net profit of RM22.9 million a year earlier as revenue fell.

In a statement to Bursa Malaysia today, Mudajaya (fundamental: 1.15; valuation: 1.8) said revenue dropped to RM188.75 million from RM334.34 million.

For its full year, Mudajaya registered a net loss of RM70.23 million against a net profit of RM151.18 million a year earlier. Revenue fell to RM1.04 billion from RM1.54 billion, mainly on lower construction income.

Mudajaya said the weaker performance at its construction segment was due to higher cost for its operations.

Moving forward, the firm said the construction sector in Malaysia looks promising in the coming years due to expectation of government and private projects.

These projects include the Mass Rapid Transit Line 2 & Line 3, power plants and highways, according to the firm.

Mudajaya said its strategy involved building up assets that can generate recurring income.

The company said construction, and property development would remain its main revenue source for the foreseeable future.

At 12:30pm today, Mudajaya shares settled two sen or 1.23% lower at RM1.61, giving it a market capitalisation of RM866.82 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

Supermax 4Q net profit slips 19.9% dragged down by start-up costs

KUALA LUMPUR (Feb 27): Supermax Corp Bhd, the world's second largest rubber gloves maker by volume, saw its net profit slip 19.9% to RM20.07 million or 2.95 sen for the fourth quarter ended Dec 31, 2014 (4QFY14) from RM25.05 million or 3.68 sen a year ago, dragged down by start-up costs for its new lines at its two new plants in Meru, Klang.

Revenue in 4QFY14, however, rose 34.6% to RM258.75 million compared with RM192.24 million in 4QFY13, as the group had fully recovered from the fire at one of its plants in the quarter under review and also benefited from a stronger US dollar which had appreciated by 5%.

In a filing with Bursa Malaysia today, Supermax attributed the lower profitability to start-up costs incurred as the group continued to install and test-run brand new lines at its two new plants in Meru.

"These initial costs and will not be a factor once all the lines have been installed and are running at optimum levels," it said.

For the full year of 2014 (FY14), its net profit fell 15.8% to RM100.8 million from RM119.72 million the previous year, while revenue declined 4.6% to RM1.01 billion from RM1.05 billion in FY13.

Nevertheless, Supermax (fundamental: 1; valuation: 0.6) is proposing a final dividend of 3 sen per share for FY14 for the approval of the shareholders at a forthcoming annual general meeting (AGM).

"Average selling prices have been trending flat to lower in 2014 in tandem with lower raw material prices and rising competition in the nitrile division," said Supermax.

"While we are increasing production output of nitrile gloves in line with the current market demand, we have been maintaining our manufacturing margins of nitrile glove at between 9% and 11% to be in line with global market prices, especially nitrile gloves from China and Thailand. This is in line with our objective to be globally competitive," it added.

In a separate filing with Bursa Malaysia today, Supermax said it intends to seek its shareholders’ approval at the upcoming AGM on the proposed appointment of Tan Sri Rafidah Aziz as its chairman and independent non-executive director.

"Upon obtaining shareholders’ approval on the proposed appointment, Supermax's executive chairman and group managing director (MD) Datuk Seri (Stanley) Thai Kim Sim will be redesignated to group MD (only).

"The proposed appointment and redesignation reinforce clear division of roles and responsibilities between the chairman and group MD respectively and are in line with the recommendation of Malaysian Code on Corporate Governance 2012," said Supermax.

Supermax shares closed one sen or 0.46% at RM2.19 today, with a market capitalisation of RM1.46 billion.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

如何计算和操作FBMKLCI Put Warrant?

顺应网友的要求,今天特别写一篇简单的Put Warrant计算方法,以及要如何操作这些Put Warrant。

我们都比较了解和熟悉Call Warrant(认购凭单),但是对于Put Warrant(认沽凭单),很多人还是不太了解。

在大马交易所上市的Put Warrant并不多,那些股票代号后头有H的(如HB, HC,HD,HE,HF,HG。。)就是Put warrant。

Call Warrant是博取在股票或指数上涨时赚钱,而Put Warrant则是博取在股票或指数下跌时赚钱。

简单来说,买进Put Warrant的目的就是希望股票或指数跌得越多越好,越跌就越赚钱。

要操作FBMKLCI的Put Warrant,我们首先必须要了解该凭单的转换价(Exercise/Conversion Level)和转换比例(Exercise/Conversion Ratio)。

就以FBMKLCI-HC作为例子好了。

从BURSA网站,所得到FBMKLCI-HC的资料(Profile for Structured Warrants)如下:






Issuer:Macquarie Capital Securities
Exercise Level:1820
Exercise Ratio:200:1
Maturity:30/6/2015

因为这是Put Warrant,所以必须要等到指数跌到低于1820点时才可以转换。

如果FBMKLCI-HC在截止时(2015年6月30日)综合指数是高过1820,那它将成为废纸,投行也无需支付一分钱。

如果在截止时指数是低于1820,那么投行将会结算出凭单的内在价值。

结算方法 =(Exercise Level - Final Level)/ Ratio

根据昨天综合指数的收市行情(1716.58点)来算,那么FBMKLCI-HC应该值得(1820 - 1716)/ 200 = RM0.52

也就是说假如昨天是该凭单的截止日的话,那么Macquarie Capital 投行就要付你RM0.52。

但是别忘了,FBMKLCI-HC昨天的闭市在RM0.755,如果你以这个价钱买进的话,你又只能够拿回RM0.52,那你还是倒亏RM0.235。

所以,何时买进与在何时卖出很重要,而且你还要对综合指数接下来的走势很有把握。

打个比方,如果你认为大盘接下来的表现将会很差很差,甚至估计综合指数在6月30日以前会去到1600点。

那么以1600点来做结算,FBMKLCI-HC将有机会可以去到(1820-1600)/ 200 = RM1.10

如果以目前的价位RM0.785买进,还有RM0.315或40%的增值空间。

但是,万一综合指数在截止时跟你来个大反弹,甚至高过1820点,那么你的所有投资将sayonara。

我不太鼓励新手(或者不了解的投资者)操作Call Warrant和Put Warrant,首先你要对股价或指数的走势很有把握,还要拿捏得当,也要在跌时果断止损,而且还要承受得住压力。

我认识很多人到头来是亏到一毛不剩的,因为这就好像在玩俄罗斯轮盘那样,到最后一定会有输家出现,只是看谁跑得比较快。


我还是那一句:不熟不买

周顯 - 樓市只會慢慢跌 大插兩成違理論

【明報專訊】有關樓價會不會下跌的討論,我並不打算參與,因為這需要到實質數據的計算,而計算並非我的所長。不過有一些說法,卻顯然是違反樓市的基本理論,而理論卻是我專長的範圍,所以不妨說一下。


流通性不高 應先跌成交再跌價

其中的一個違反理論的說法,就是樓市會大跌兩成,或三成,按照樓市的理論,這卻是不可能的事。這是因為樓市是流通性不高的資產市場。在一個流通性很高的資產市場,如股票,通常是先跌價格,再跌成交,但是,在樓市這種流通性不高的市場,其特性卻是先跌成交,再跌價格。

所以,當日香港政府推出辣招時,樓市成交立時冰封,但是價格卻並沒有即時下跌,很多人馬上呱呱嘈,可見得這些人對於樓市的基本知識,是完全無知的地步。因為,按照樓市的特性,是先跌成交,再跌價格,因此也可以換個說法,就是當樓市的成交大減,其實已經是相等於價格下跌了。

因此,樓市除非是遇上了大型的金融危機,才會造成價格的突然下跌兩成以上,否則,它會先把成交跌了下來,最少要等一年半載,價格才會慢慢的向下調。如果要樓價下跌兩成至三成,在正常的情之下,最快的時間,也要兩年以上。因此,就算是樓市終於熊市了,就算有人因為三按四按爆煲了,總體樓市價格也不會在一年之內,暴跌兩成以上。

[周顯 投資二三事]]

http://www.mpfinance.com/htm/finance/20150227/columnist/en30_en30.htm

Kumpulan Perangsang Selangor posts fourth consecutive quarterly profit

KUALA LUMPUR (Feb 26): Kumpulan Perangsang Selangor Bhd (KPS) posted a fourth consecutive quarter of profits, with a net profit of RM32.1 million for the fourth quarter ended Dec 31, 2014 (4QFY14) compared with a net loss of RM10.69 million a year ago.

Revenue, however, fell 3.3% to RM85.2 million from RM88.07 million in 4QFY13. Earnings per share for 4QFY14 was 6.4 sen compared with a loss per share of 2.1 sen a year ago.

The Selangor government-owned diversified company attributed its return to the black to contribution from the infrastructure and utilities’ associated companies.

However, KPS (fundamental: 1.1; valuation: 1.8) pointed out revenue from its hospitality and infrastructure and utilities’ segments recorded lower revenue.

KPS’s hospitality division collected less revenue in 4QFY14 due to Quality Hotel Shah Alam’s closure, although the effect was offset by higher year-on-year contribution from Brisdale Hotel International Sdn Bhd.

Although KPS’ infrastructure and utilities business made a pre-tax profit of RM43.77 million and brought profit on the group level in 4QFY14, the segment’s revenue was lower as its construction earnings were smaller.

Only the infrastructure and utilities and trading segments recorded pre-tax profit. KPS said its other divisions – hospitality, golf club and recreational activities, oil and gas (O&G), telecommunication, and investment holding – were in the red in 4QFY14.

For the full year of 2014 (FY14), KPS posted a net profit of RM115.97 million or 23.2 sen a share, down 55.99% from RM263.49 million or 54.9 sen a share in FY13, on higher allowance on impairment of trade receivables, while there was an one-off gain from selling a subsidiary in the prior year.

Revenue was 4.3% higher at RM315.37 million from RM302.47 million in FY13.

Going forward, KPS said its infrastructure and utilities division will have to seek new investment opportunities once the Selangor government takes over its water assets.

However, the group expects its O&G business to contribute positively to its results, seeing as the segment’s subsidiary NGC Energy Sdn Bhd had registered a net profit of RM3.71 million in FY14, from RM1.19 million the previous year.

KPS shares dropped one sen or 0.64% to close at RM1.56 today, giving it a market capitalisation of RM783.44 million.
(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

Thursday, February 26, 2015

只要偏離了原本的目的,即使是正確的事也沒有任何意義 - 一個磨坊水車的故事 - mrmarkettw

上個月和一位財金系的學弟閒聊,
我們聊到了一個有趣的話題。

「現在大盤這麼高,到底這一波股價上漲的原因是什麼?」他閒聊著說道,

「我不知道。」我說。

「雖然說,需求大於供給?
 可是以效率市場的角度來看,這背後應該有甚麼原因吧?」

他表情似乎陷入了迷惘,馬上開始上網查資料看新聞,

我則是想起了一個故事。


---

在中古世紀,
有一位磨坊主人過世了,
他兒子繼承了磨坊,這也是他賴以為生的唯一財產。

這個兒子雖然不懂機械學,
但他藉由祖傳的經驗,可以將磨坊的各個部分調整好,
讓磨出來的麵粉速度快又品質好,
他就以此為生。

但有一天,
他突然開始思考起磨坊的構造,
從鄰居那模糊的聽到一些機械學的事,
就開始研究磨坊是怎麼轉動的。

他開始從磨盤觀察到轉軸、轉軸觀察到水輪、
水輪觀察的閘門、閘門觀察的水壩、
水壩觀察到河流。

他終於明白了,原來磨坊不能沒有河流和水壩,
問題的關鍵是水壩和河水!

因為這個驚奇的發現,
他開始每天專注的研究河流,
再也不像從前一樣,
觀察麵粉的品質,
進而調整磨盤、水輪間的齒輪和皮帶。

磨坊的麵粉變得一團糟,別人都說他不務正業,
但他卻有一套理論反駁:

「沒有流水,任何磨坊都不能轉動。
 因此要了解磨坊,就要知道怎麼控制流水,也就是認識河流!」

他認為,河流就是磨坊真正的本質。

---


只要偏離了原本的目的,即使是正確的事也沒有意義
磨坊是由河流驅動的,
一旦沒有河流,磨坊就失去功能,
這是正確的理論。

但是,那又怎樣?

如果不能改善麵粉的品質及產量,
研究河流的理論,
即使再正確也毫無意義。


這道理很容易都懂,但換個說法就忘了。

以投資為例子,

投資的目的是改善個人財務,換得更多自由的時間。

股價上漲的確是某些原因造成,
也許經過努力以後,你能歸納出許多原因,
然後用供需法則或一些理論去解釋它。

但是,
你應該幾乎沒看過有人因為天天看新聞、得知每個股市上漲原因,
就讓財務狀況徹底改善、擁有更多自由的時間。

所有對目的沒幫助的事情、理論,
就像放棄調整磨坊,
而跑去研究河流一樣。

---

「你有找到原因了嗎?」我問道,

「有,但我不相信。」他一邊划著手機一邊說,

「那你相信效率市場理論嗎?」

「這個嘛,如果相信就不會唸財金系了。」說完我們都笑了。

他的意思是,
如果效率市場理論有用,
股價已經反映了所有資訊,
那還需要他念財經系幹嘛呢?

(補充:巴菲特曾說,效率市場是個愚蠢的理論,但這套理論學術界現在仍然還在用。 )

「經濟學是一種學術,一門描述不懂經濟學的人如何創造財富的學科。」- Turner & Trompenaars

http://mrmarkettw.blogspot.com/2015/02/blog-post_25.html

I-Bhd profit for 2014 rises 21.5% to RM53.4mil

PETALING JAYA: I-Bhd’s net profit for the fourth quarter ended Dec 31, 2014, was down to RM13.67mil from RM29.58mil a year earlier. Revenue was up 22.46% to RM68.16mil, while earnings per share dropped to 1.38 sen from 6.15 sen.
The reduced profit was mainly due to a lower fair value gain on investment properties of RM1.4mil compared with a fair value gain of RM13mil in the previous period.
From a segmental perspective, property development contributed a pre-tax profit of RM58.7mil, while leisure contributed RM12.9mil and investment properties recorded RM1.4mil.
The company’s cash position improved to RM159.2mil from RM7.07mil previously.
In a statement, I-Bhd group executive chairman Tan Sri Lim Kim Hong reiterated the group’s adoption of a minimum 30% dividend payout policy.
“In respect of the financial year ended Dec 31, 2014 (FY14), a final single-tier dividend of 30% of the group’s net profit amounting to RM16.03mil, or 2.2 sen per share, has been proposed by the directors for shareholders’ approval at the forthcoming AGM,” Lim said.
I-Bhd’s full-year net profit rose 21.48% to RM53.41mil on the back of a 71.62% increase in revenue to RM261.11mil.
The property development segment alone accounted for 77.1% and 84.5% of the group’s revenue and profit before tax, respectively.
The better results were driven by higher percentage of recognition for both project completion and sales for i-Residence, i-SOHO, i-Suites and the newly launched Liberty Tower.
The i-SOVO project was completed in the fourth quarter and handed over to buyers.
Commenting on the company’s future business strategy, Lim said while property development would remain the main revenue contributor, the group would also build up its recurring income businesses from the leisure and property investment segments. This is so that once i-City is fully developed, a strong recurring income base would have already been put in place.
“Our long-term business plan is to have half of the group’s earnings coming from recurring revenue so that we can withstand the downside of any property cycle,” envisaged Lim.
Moving forward, I-Bhd expects a gross development value (GDV) of RM2bil from its property development segment during FY15 to ensure that it is able to sustain its growth momentum.
“The group has reached a stage where property development will continue to be the major contributor to the group. In 2015, the group plans to launch both ‘8 Kia Peng’ as well as the ‘Central Towers’ developments,” said I-Bhd.
8 Kia Peng is a luxury serviced apartment development sited within the vicinity of the Kuala Lumpur City Centre with an estimated GDV of RM82mil.
Central Towers, meanwhile, is a RM1.2bil development comprising an office tower, two residential towers, the Double Tree by Hilton Hotel, a convention centre and a performing arts centre.

Exciting times ahead for GHL, says CIMB Research

KUALA LUMPUR: CIMB Equities Research sees exciting times ahead for GHL Systems and maintains its Add call, with a slightly higher RM1.11 target price.
It said on Thursday the higher target  price was based on 23.8 times CY16 P/E (40% premium over the payment sector average in view of GHL’s strong FY13-16 EPS CAGR of 78%).
“Overall, we think that GHL’s growth prospects are intact and we are still confident of its execution strategy,” it said.
GHL’s FY14 core net profit was in line with CIMB Research’s expectation at 104% of its estimate but only 86% of consensus.
Despite a higher effective tax rate in FY14, core net profit rose to RM9.7mil versus RM5.3mil FY13, driven by stronger sales from its cash transaction payment acquisition (TPA) segment following the e-Pay acquisition.
“We raise our FY15-16 EPS forecasts by 1%-4% to account for higher TPA contribution driven by new merchant acquisition activities.
“Stronger TPA earnings and M&A activities in new markets are potential re-rating catalysts. GHL is our top pick in the domestic tech sector,” it said.
GHL’s revenue in 4Q14 rose to RM49.6mil versus RM16.2mil a year ago, mainly due to higher contributions from the TPA segment, which grew from RM4.1mil to RM36.7mil following the acquisition of e-Pay.
“GHL is in the process of integrating its back-end system to the various banks in order to implement its TPA agreements to accept international credit cards.
“Management highlighted that the bulk of its effort in 2015 will be directed towards TPA initiatives in Malaysia and the Philippines,” it said.
CIMB Research said  GHL is targeting to sign up 3,000 to 4,000 merchants in Malaysia following its agreement with Global Payments this year.
 GHL also targets to sign up 300-500 merchants per month in the Philippines to accept payments using UnionPay and JCB International cards.
“Management expects its first TPA merchants to be on board in 2Q15 and expects more merchants recruited in 2H15, which is in line with our expectations," it said.

周顯 - 匯控電盈 殺傷力遠超老千股

匯控電盈 殺傷力遠超老千股
2015年2月26日

【明報專訊】那天上網,看到有內地人列舉了「香港100大老千股」,覺得十分好笑。其實,照我的看法,老千股一點都不可怕,因為買老千股,好比女人到蘭桂坊去玩一夜情,都預會有蝕底架啦,只要在過程中尋到了開心和刺激,也就足夠了,如果好彩,對方還可能留低一萬幾千零用給自己,咁仲算係賺!

換言之,如果一個人在老蘭尋找真愛,希望找到老公,這應該是她愚蠢,並不是老蘭的錯,而一個男人在老蘭上說的花言巧語,當然也是決不可信,不過如果說得動聽,信大話,騙自己,又有何妨?

老蘭蒲友傷女 遠不及敦厚男

但是,如果有一個男人,敦厚老實,出來溝女,滿口誠懇,又結婚,又買樓,信誓旦旦,愛你一萬年,這種男人騙女人,殺傷力才大,女人相信了這種謊言,那就並非她蠢,而是那個男人太壞了。

這種敦厚男人、騙你一生的股票,好比這幾年的匯豐控股(0005),李澤楷入主後的電訊盈科(0008),才令股民傷盡了心,輸盡了銀紙。

所以我常常說,老千股不可怕,藍籌股才可怕,因為老千股不會身,正如老蘭識仔也不會付託終身。因此,當老千股發生了股災之後,很快可以復元,因為老千股的股民是有自癒能力的,輸完又來賭過。但是,一旦藍籌股炒爆了,發生股災,對於股市的傷痛也就慘重了,要一年兩年,甚至是很多年之後,市場也不會忘記其慘痛。

[周顯 投資二三事]

Wednesday, February 25, 2015

Mitrajaya - 4Q results: Finishing inline

Results

  • 4QFY14 results came in with revenue of RM135.8m (+10% YoY, -7% QoQ) and PATMI of RM16.1m (+20% YoY, +23% QoQ).
  • For the full year FY14, PATMI came in at RM53.7m, representing a 114% YoY growth on a core basis (i.e. after stripping out RM4.2m disposal gains on non-core assets recorded in 3Q last year).

Deviation

  • Full year FY14 PATMI was within expectations (i.e. +4.6% above our forecast).

Dividends

  • 5 sen first and final dividend was proposed in relation for the year FY14 (FY13: 2 sen), above our forecast of 3.9 sen.

Highlights

  • Construction progressing well. Construction revenue jumped 72% YoY, fuelled by contributions from key jobs such as the LRT stations, MACC Headquarters and Symphony Hills. Construction EBIT margin also expanded YoY from 6.7% to 10.3% as newer jobs, which command higher margins, took a larger contributing share.
  • Orderbook at an all-time high. New job wins hit a record high of RM1.1bn in FY14 (FY13: RM501m). Mitrajaya has also started the year well with RM230m in new job wins YTD, hitting 46% of our full year target. Its orderbook currently stands at RM1.9bn, implying a superior 5.1x cover on FY14 construction revenue.
  • Softening property sales for 2nd Phase. Mitrajaya launched Phase 2 (RM200m) of its Wangsa 9 Residence in Dec and has seen take up rate of only slightly above 10% (as of end Jan). Nonetheless, we are not entirely concerned by this as Phase 1 (RM200m) which was launched in Oct has hit 70-80% take up rate.

Risks

  • Delays in construction execution and softening property market.

Forecasts

  • No changes to estimates as the results were inline.
  • We maintain our FY15 and FY16 PATMI forecast of RM77.7m and RM93.3m, translating to 45% and 20% YoY growth respectively.

Rating

BUY, TP: RM1.97
  • We continue to highlight Mitrajaya as our top small cap construction pick given its strong earnings visibility backed by its sizable orderbook.

Valuation

  • Our TP is still based on an unchanged 10x P/E on FY15 earnings. The stock currently trades at 8.5x and 7.1x FY15- 16 P/E with dividend yield of 3.5% and 4.3%.
Source: Hong Leong Investment Bank Research - 25 Feb 2015

Muhibbah consortium bags RM166 mil EPCIC contract

KUALA LUMPUR (Feb 25): A consortium of JGC Corporation, PT JGC Indonesia, and Muhibbah Engineering (M) Bhd has bagged an engineering, procurement, construction, installation and commissioning (EPCIC) contract worth RM116 million.

According to Muhibbah’s (fundamental: 1.15; valuation: 0.6) statement to the exchange, the consortium has received the letter of award for the EPCIC contract from Regas Terminal (Sg Udang) Sdn Bhd, a unit of Petronas Gas Bhd (fundamental: 2.7; valuation: 0.9).

Under the contract, the consortium will undertake the EPCIC for the RGT1 minimum send-out capability improvement project for the LNG Regasification Terminal in Sungai Udang, Melaka.

The contract will be for a duration of 22 months, commencing from the first quarter of 2015, to be completed by the fourth quarter of 2016.

“The contract is expected to contribute positively to the earnings and net assets of Muhibbah Group for the current and future financial years. The contract does not have any impact on the share capital and/or shareholding structure of Muhibbah,” it said.

Muhibbah rose 7 sen or 3.2% to RM2.28 at 3.05pm, giving it a market capitalisation of RM954.53 million.

(Note: The Edge Research's fundamental score reflects a company’s profitability and balance sheet strength, calculated based on historical numbers. The valuation score determines if a stock is attractively valued or not, also based on historical numbers. A score of 3 suggests strong fundamentals and attractive valuations.)

CIMB Research retains Add for Only World Group at TP of RM2.62

KUALA LUMPUR:  CIMB Equities Research is maintaining its Add rating for Only World Group Holdings Bhd (OWG) with a target price of RM2.62, which is an upside of 68.9% from its last traded price of RM1.55.
It said on Wednesday the target price was based on 19 times CY16 EPS, a 20% discount to the target P/E of its larger cap F&B peers.
“Potential rerating catalysts are the launch of the Genting Integrated Tourism Plan and signing of the tenancy agreements to fill up Komtar Penang,” it said.  
In OWG’s first half ended Dec 31, 2014, core EPS of 3.9 sen was in line at 51% of the research house’s full-year forecast.
The stronger on-quarter results in 2Q was due to increased patronage at its food outlets and amusement parks with the year-end holiday season.
“Its EBITDA margin was 2.7 percentage points below forecast due to listing expenses and equipment write-off relating to the relocation of outlets at Genting,” it said.
During the six months, in addition to the increased holiday season traffic, OWG also saw a net addition of three outlets in Genting (closed five and opened eight outlets), which contributed to a 28% increase in revenue on-quarter.
“OWG’s revenues continue to be dominated by FSOs (79%), followed by amusement parks (21%).
 “We expect OWG to complete the signing of the various tenancy agreements to fill up the space in Komtar by end-1HCY15. OWG will keep some of the space for its own F&B operations (levels 59 and 60) and lease out the remainder (levels 5 and 65, the roof top bar).
“We have not imputed any contribution from the OWG-operated spaces in Komtar. Upside to our forecasts include further space expansion in Komtar, which will increase its net lettable area,”  it said.
CIMB Research said while earnings in FY15 will be flat due to the ongoing renovation at Genting and Komtar, investors can look forward to an exciting 2016 when Sky Avenue is launched and the theme park is ready.
“The newly-refurbished Komtar will also be ready by end-2015. This will drive EPS growth of 46-47% in FY16-17. We also expect a maiden dividend payment of 2.8 sen commencing FY16,” it said.