Booking.com

Booking.com

Favorite Links

Thursday, February 28, 2013

全年净利飙37%至2.3 亿 马星放眼30亿销售额

Source: http://www.nanyang.com/node/514048?tid=462


(吉隆坡27日讯)马星集团(MahSing,8583,主板产业股)2012财年创下25亿令吉销售佳绩后,为2013财年设下30亿令吉销售目标,相等于按年增长20%。
该公司今天发布2012财年业绩,全年营业额达17亿8000万令吉,净利报2亿3060万令吉,分别按年增长13%及37%,双双创下新高。
末季方面,净利劲扬35%,报5540万令吉,营业额则报4亿4140万令吉;每股盈利达27.6仙,上扬36%。
马星集团董事经理暨总执行长丹斯里梁海金在文告中说,公司推出的计划综合各类产业,这改善了赚幅表现。
“我们一直针对市场需求推出产业项目,让我们在营业额及盈利取得双位数增长。”
梁海金指出,30亿令吉销售目标中,72%将来自有地产业及高楼型产业项目。
目前,马星集团正在发展40个项目,今年会再增加6个项目,梁海金相信将有助刺激今年的销售额。
他说:“从踊跃的登记数量来看,市场对产业的需求依然殷切,特别是可以为大众市场以及中等收入一族提供良好价值的产业。”
他举例,公司在吉隆坡南部推出的Southville项目共吸引了逾8000人登记,主要是首期工程行政套房每单位面积975平方尺,拥有3间卧室,价格仅从28万令吉起。
今年推37亿房产
为了达致30亿令吉销售目标,马星集团今年将推出发展总值高达37亿令吉的产业项目。
梁海金指出,当中大部份(约62%)位于大吉隆坡区及巴生谷,槟城估计会有13%,而柔佛新山和沙巴则各占20%及5%。
“我们拥有多元化项目,包括有地及高楼型住宅、商用、综合及工业项目,可满足每个人的需求。”
除了目前的计划,马星集团的6项新计划包括雪州万宜的Southville City、万挠的M Residence2、槟城的Ferringhi Residence及iParc@Tanjung Pelepas;而柔佛的新计划是TheMeridin,沙巴亚庇的Sutera Avenue。
“我们在策略增长区有均衡的产品组合,以满足不同地区及买家的需求。”
派息7.5仙 拥5.9亿现金
马星集团董事部建议在2012财年,派发每股7.5仙的首次与终期股息。
文告指出,股息总额这相等于公司净利的40%,符合该公司在2006年的派息政策。
另外,马星集团目前手握5亿8950万令吉现金,净负债率是0.26倍,这比管理层之前定下的0.5倍低得多。
该公司2012财年除了创下卓越销售表现,盈利可见度也强劲,因为截至去年12月31日,该公司未入账销售达31亿6000万令吉,相等于产业业务去年营业额的2倍。
梁海金指出,强劲的未入账销售额可确保公司近期表现可见度,以及带来稳定的现金流。
公司的未入账销售、崭新与现有产业项目余下发展总值和土地交易总计189亿令吉。
以这笔现金,加上该公司最近将发行附加股筹资,让马星集团有更大财力可以继续增购土地供未来发展。

Dijaya Q4 profit advances 18%

Source: http://biz.thestar.com.my/news/story.asp?file=/2013/2/28/business/12771840&sec=business


PETALING JAYA: Dijaya Corp Bhd announced an 18.14% jump in net profit to RM60.2mil and a 48.42% increase in revenue to RM234.06mil on the back of record sales of RM967mil from its flagship projects for its fourth quarter to Dec 31, 2012.
On a full-year basis, net earnings increased 119.7% to RM169.2mil on the back of a 68% jump in revenue to RM630.06mil. Earnings per share almost doubled from 16.89 sen in 2011 to 32.13 sen in 2012. Dijaya also announced a first and final dividend of 6.4 sen less tax for 2012.
Dijaya told Bursa Malaysia that the board had also approved the incorporation of the revaluation surplus, net of deferred tax of approximately RM10.34mil, in the consolidated financial statements for 2012. The revaluation surplus will increase the net assets per share by RM0.01 for 2012.
The group's record sales of approximately RM967mil mainly came from its flagship projects; such as the Tropicana Danga Bay development in Johor Baru, along with Tropicana Avenue and Tropicana Gardens in the Klang Valley.
“In the past two years, Dijaya has grown exponentially in size and has diversified geographically by acquiring premium land banks across Malaysia. We now have more than 364.22ha of land in prime locations, namely, in the Klang Valley, Kuala Lumpur City Centre, Iskandar region in Johor Baru, Penang and Sabah, with a total estimated gross development value of RM50bil.
“These strategic land places us in a good position, helping us focus on our growth and sustainability within these hot spots for the next 10 years.” said group chief executive officer Datuk Yau Kok Seng.
Dijaya will maintain its growth momentum in 2013 with planned launches that include W Kuala Lumpur Hotel and The Residences,Penang World CityTropicana Gardens in Kota Damansara, Tropicana Metropark in Subang, Tropicana Heights in Kajang, and Tropicana Danga Cove in Johor. As at Dec 31 2012, Dijaya had unbilled sales of RM951mil.

Wednesday, February 27, 2013

Mah Sing's pre-tax profit rises to RM315m

Source: http://www.btimes.com.my/articles/20130227144955/Article/

Mah Sing Group Bhd's pre-tax profit for the financial year ended December 31, 2012 rose to RM315.52 million from RM238.63 million in 2011.

This was achieved on the back of a higher revenue of RM1.78 billion for the year from RM1.57 billion previously.

Meanwhile its pre-tax profit for the last quarter of the year rose to RM72.28 million from RM57.23 million in the same quarter of 2011.

Revenue for the quarter rose to RM441.44 million from RM422.13 million the previous corresponding quarter.

Mah Sing attributed the better revenue and profit to its residential projects and commercial projects carried out in Puchong, Cyberjaya, Jalan Ampang, Petaling Jaya, Meru-Shah Alam, Rawang, Cheras, Mont' Kiara, Damansara, Sungai Besi, Setapak and Bukit Jelutong.

The developer said it raked in more than RM2.5 billion in sales over its RM2.26 billion sales in 2011.

"The company has set a sales target of RM3 billion for 2013, a 20 per cent increase from 2012, which is in line with their existing scale of operations with 40 projects," Mah Sing said in a statement here today.

It also had an unbilled sales of approximately RM3.16 billion as at December 31, 2012.

Group managing director and Group chief executive Tan Sri Leong Hoy Kum said Mah Sing had been spot-on with market demand in terms of launches, allowing the company to deliver double digit growth in both revenue and profits.

"For 2013, we expect our sales to be boosted by six new projects on top of our existing projects.

"To support the sales target of RM3 billion, the company intends to roll out launches worth RM3.7 billion in 2013," he said.

The developer said Greater KL and Klang Valley will make up the bulk of 2013's sales target at 62 per cent, while Penang island will contribute 13 per cent, Johor Baru 20 per cent and Sabah five per cent.

Besides ongoing projects, the company has six new projects which are the Southville City and M residence in the Klang Valley, Ferringhi Residence in Penang island, Mah Sing iParc at Tanjung Pelepas and The Meridin at Medini which are located in Iskandar Malaysia and Sutera Avenue in Kota Kinabalu.

The board has recommended a first and final dividend of 7.5 sen (net) per ordinary share of RM0.50 each consisting of RM0.4 sen per share less income tax of 25 per cent and a single-tier dividend of 7.2 sen per share for the financial year ended December 31, 2012.

It has at present 34 projects in Greater Kuala Lumpur, Penang and Johor with a combined gross development value and unbilled sales of RM14 billion.-- Bernama

Tuesday, February 26, 2013

末季淨利按季挫17%‧安聯保險財測兩極

Source: http://biz.sinchew.com.my/node/70556


(吉隆坡25日訊)安聯保險(ALLIANZ,1163,主板金融組)2012財政年核心淨利迎合預期,儘管分析員認為潛在銀行保險分銷渠道和推介新產品有望提供催化動力,惟財測出現兩極化調整。
安聯2012財政年報淨利2億零760萬令吉,普險和壽險分別錄取14.4%和14.5%成長,成長率超越2011年,僑豐研究因此決定上調2013財政年財測7.7%,至淨利2億2千300萬令吉。
“該股潛在重估因素包括採用銀行分銷渠道和推介新產品。"
達證券研究則表示,雖然安聯保險2012年淨利令人鼓舞,惟僅佔財測97.6%,因此根據最新業績稍微下調未來兩年淨利預測。
達證券說,雖然全年淨利保持成長,但若按季比較,第四季淨利卻大跌17.1%,主要因索賠額按季成長7.8%和其他開銷大增18.8%。
“我們認為該股合理價為領域同儕的35%至40%本益比折價,這是由於該股市值和流通量偏低,給予折價估值較為合理。"
(星洲日報/財經)

Monday, February 25, 2013

Mah Sing has the eye for big deals

Source: http://www.harimaucapital.com/2013/02/mah-sing-has-eye-for-big-deals_23.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+InvestingInBursaMalaysiamalaysiaStockMarket+%28Investing+in+Bursa+Malaysia+%28Malaysia+Stock+Market%29%29


MAH Sing Group Bhd group managing director Tan Sri Leong Hoy Kumhas just come back from a four-day retreat in Koh Samui. He's looking dapper and his eyes are gleaming with energy.
He apologises for being unable to take us out for lunch as he wants to continue fasting for the remaining week. His holiday wasn't a typical food feast dotted with long periods of winding down.
“I lost 2 kgs! See how loose my pants are,” says Leong as he shows how his pants now hangs copiously on his new slimmer waistline.
For Leong, being healthy is just as important as realising his vision of making Mah Sing the next Cheung Kong Holdings of Malaysia. Cheung Kong belongs to Hong Kong tycoon Li Ka-shing and is one of the largest property developers in Hong Kong.
As it is, Mah Sing currently has 40 projects and is Malaysia's second-largest developer by sales value.
To realise the Cheung Kong vision, which Leong hopes to achieve within the next 10 years, Leong realises he needs to be fit, alert and energetic. Yes, just like Top Glove Bhd's managing director Tan Sri Lim Wee Chai, Leong wants to live to a 100 years of age.
“Being a Cheong Kong means expanding and buying more land. I am always preparing for the future. We do not over-expand our capacity. We have the financial muscle to do that. For example, expanding into Johor. We had done thorough research and know who we want to target. We are not simple,” says Leong.
Not simple indeed. That certainly sums up Leong, who is not easily swayed by other property developers who have gone to foreign countries to launch properties.
Leong: ‘Looking at the right land at the right time is also an art’.Leong: ‘Looking at the right land at the right time is also an art’.
“For now, we will remain focused on Malaysia and we are kept extremely busy with 40 ongoing projects here. While we are focused on our domestic projects, we attract both Malaysian and international buyers, which is why we are starting our sales galleries overseas. We will definitely explore (going overseas) on a longer term basis should any good opportunities come up. It is not necessarily just the United Kingdom; it can be Singapore, Jakarta or Shanghai,” says Leong.
Mah Sing's current customer base comprises mainly Malaysians living in the country as well as those working overseas. Foreign purchasers make up under 10% of its sales. Even so, Mah Sing has exceeded the RM2bil sales mark for two consecutive years from 2011 to 2012. With its new project roll-outs for 2013, Leong expects that to increase by 15% to 20%.
Its closest competitor, S P Setia achieved record-breaking sales of RM4.23bil for its financial year ended Oct 31, 2012 and is setting itself a target of RM5.5bil for this financial year.
Meanwhile, Mah Sing is targeting to achieve total sales of RM3bil this year, which is a 20% growth from RM2.5bil the previous year.
Just a few weeks ago, Mah Sing Group received “overwhelming” response for its 69 units of luxury Aspen bungalows, which the company is promoting on a build-then-sell concept. The units, located within the 60.75ha Garden Residence in Cyberjaya, were launched last week. Priced from RM3.88mil, the 3.5-storey Aspen bungalows in Precinct 4 sits on comfortable lot sizes of 60' x 90' and have spacious built-up areas of 7,796 sq ft.
These are unique bungalows with 9+1 bedrooms that are 3.5 storeys and come equipped with a lift.
“We build things with practicality and style in mind. This bungalow can fit in all generations of a family. Previously, the older parents have to live on the ground floor. Now, with the lift, they can stay upstairs. There is privacy for all, as everyone can stay on a separate floor. Your in-laws can stay downstairs,” explains Leong.
He adds: “Nowadays, selling property is about selling an environment. Even when we do affordable housing, we do it with style. Property development is more art than science. Land acquisition and knowing what the market wants is more of an art. Looking at the right land at the right time is also an art.”
Thus, on his property outlook, Leong says that he is still selectively optimistic about certain sectors as property is acknowledged as the best hedge against inflation.
“People buy properties as a form of wealth preservation and not speculation and we believe there will be strong demand for serviced apartments from 500 sq ft and landed properties below RM1mil in good schemes.
“When I say good schemes, I refer to well-located projects with easy access and amenities or schemes that are mature,” says Leong.
An exciting 2013
CIMB research head Terence Wong is expecting Mah Sing to meet its new sales target for its financial year ended Dec 31, 2012 of RM2.5bil almost spot on.
“This is the group's best-ever performance and is 11% higher year-on-year. Compared with 2007, just before the global financial crisis, new sales have more than tripled,” says Wong.
Apart from targeting total sales of RM3bil this year, unbilled sales of RM2.95bil is 2.2 times its financial year 2011 property segment revenue.
Mah Sing's product range also spans the entire range from affordable housing to premium upmarket homes, high-rise units, commercial properties and industrial properties.
Aspen Bungalows are slated for completion in mid-2013. Aspen Bungalows are slated for completion in mid-2013.
For the nine months ended Sept 30, 2012, Mah Sing's net profit rose 37% to RM175.2mil while revenue was up 16% to RM1.3bil from the previous period.
For this year, Leong is launching six new projects which consist of Southville City and M Residence 2 in the Klang Valley, Ferringhi Residence in Penang island, Mah Sing iParc@Tanjung Pelepas and The Meridin@Medini which are located in Iskandar Malaysia and Sutera Avenue in Kota Kinabalu. He says some 77% of sales will come from landed residential projects and niche size high-rise projects
Leong is particularly excited about the RM3.63bil Southville City project in Bangi, a 420-acre township which Leong is hoping to develop from scratch over the next five to seven years and transform it into the next thriving township of Puchong, Cheras and Kota Damansara.
New sales in 2013 will be anchored by the group's new flagship township, the RM3.63bil Southville project in Bangi, where the group is launching RM1.2bil to RM1.3bil worth of properties this year.
So far, Mah Sing has received some 7,000 registrants for the township, and many have been attracted by the affordable pricing for its residential properties. Three-storey superlink houses will be priced from RM760,000 onwards and 2- to 3-bedroom apartments priced at below RM300,000 and from RM208,000 onwards.
Besides the six new projects, the main launches for 2013 will come from Icon City Petaling Jaya, M Residence 1 in Rawang, Garden Residence and Garden Plaza in Cyberjaya and M City in Jalan Ampang.
Mah Sing is targeting to achieve 62% of total sales from its projects in the Klang Valley, 20% from Johor, 13% from Penang and 5% from Sabah.
Leong says Mah Sing is extremely keen to tender for jobs on the Rubber Research Institute (RRI) land once tenders are opened. Last August.Kwasa Land Sdn Bhd, a wholly owned subsidiary of the Employees Provident Fund, announced it had finalised the purchase price of RM2.28bil for 2,330 acres of prime RRI land in the Klang Valley. It is the master developer for this township.
Kwasa Land had mentioned that the proposed township development is expected to create abundant opportunities for developers and contractors to participate in developing residential and commercial properties, main infrastructures and public amenities for an expected population of 150,000.
Mah Sing's gearing level has been an issue of concern for many in the investing fraternity but Leong feels those fears are unfounded. As of Sept 30, 2012, Mah Sing has some RM545.3mil in its coffers.
An artist’s impression of Mah Sing’s Ferringhi Residence project in Penang.An artist’s impression of Mah Sing’s Ferringhi Residence project in Penang.
In December, Mah Sing proposed a renounceable rights issue of new shares with free warrants to its shareholders to raise gross proceeds of RM400mil to finance its operations and business expansion. The entitlement basis, date and issue price have yet to be determined.
Leong says Mah Sing is planning up to 0.5 times net gearing post-rights issue in the first quarter of 2013 as it is eyeing new strategic landbank.
“We are certain we will not gear up beyond 0.5 times. Our gearing level now stands at 0.3 times. We have cashflow from our ongoing projects and each of our projects has a 60%-80% takeup rate before we start development works. For this financial year, we are receiving some additional RM228mil from the delivery of vacant possession of our tail-end properties, over and above our existing billings,” he says.
Hong Leong Investment Bank Bhd analyst Sean Lim feels the company is handling its gearing level well, with support provided from a rights issue in December and favourable land payment terms.
Lim estimates that the expected RM400mil proceeds from the rights issue would help bring down net gearing from 0.3 times to 0.22 times currently.
“On top of the proceeds, the additional RM440mil gearing headroom (before gearing hits 0.5 times post-placement) would easily generate RM4bil of new gross development value, conservatively speaking,” Lim says.
Aside from that, Mah Sing is seeking favourable payment terms for its upcoming land acquisitions via joint ventures or prolonged payment periods of four to five years.
Lim notes that the move to seek favourable payment terms and joint ventures could be a good move to mitigate high gearing as sectoral headwinds could cause landowners to become more reasonable in their asking prices.
“In terms of landbanking, Mah Sing beat its target of RM5bil GDV worth of projects last year by around RM900mil and believes it should do better this year. Mah Sing's ability to execute is one of the best in the sector and its earnings prospects remain positive given the high unbilled sales of RM2.95bil, rising annual new sales and aggressive landbanking,” says Wong.
The appeal of Johor
The influx of interest into Johor property has become even more evident.
“The Iskandar region is developed mainly for Singaporeans,” says one investment banker from Singapore, who just bought a bungalow from one of the developers there.
“In Singapore, we don't have space. So here in Johor, we can afford to buy huge landed properties at such cheap prices,” he says.
Singaporean property buyers are feeling the heat even more in recent times. Singapore has imposed more measures to curb speculation on residential and industrial properties after home prices climbed to a record high. Some analysts, including the investment banker, feels that the curbs will fuel demand for Johor properties.
Some of the measures introduced include stamp duty for buyers, which has been increased by between five and seven percentage points. Permanent residents will have to pay the additional tax when they buy their first home while Singaporeans will have to pay the levy from their second purchase onwards.
While Leong is not revealing all of his cards just yet, he does tellStarBizWeek that he has a vision of becoming the largest lifestyle developers in the Iskandar Development Region (IDR) with a minimum gross development value (GDV) of at least RM5bil over the next few years.
In the Iskandar area, the three main areas of economic focus include Nusajaya, Medini and Danga Bay. Leong is of the opinion that all three areas will thrive, and each is already attracting its own niche market.
For Mah Sing, the target is clear. Just like Southville City in Bangi, which is targeting students from the 20 educational institutions in that area, Leong is targeting the students in Educity, Nusajaya.
The educational institutions in Educity include University of Reading from the United Kingdom, the Newcastle University Medicine Malaysia, the University of Southampton Malaysia campus, the Netherlands Maritime Institute of Technology, Raffles University Iskandar and Marlborough College Malaysia.
Leong says response for his Johor properties has been immense and the company is getting serious queries from Singaporeans, South Koreans, Japanese and Indonesians.
With all such feedback, Leong is not wasting any time and will be opening his sales gallery in Singapore after the Chinese New Year celebration.
“We will be organising buses to bring over interested buyers to view our sales gallery in the Iskandar region. We want to do this in a big way,” says Leong.
Currently, Mah Sing has five projects in Johor worth RM2.29bil.
The two new projects to be launched this year are Meridin@Medini, which is an RM1.1bil integrated project in the middle of the Medini special zone in Iskandar Malaysia, and 20 minutes from Singapore via the Second Link.
The other project is Mah Sing's i-Parc, which is currently the only sizeable freehold industrial project neighbouring the Port of Tanjung Pelepas.
Mah Sing i-Parc has a free-zone status, making it a premier industrial location, says Leong.
Undemanding valuations
Wong says Mah Sing's valuations remain undemanding with forward price earnings ratios of 5 to 6 times and a dividend yield of around 5%. He has a “neutral” call and target price of RM2.14 based on unchanged 20% discount to revised net asset value, which factors in the dilutive impact from the proposed rights issue.
UBS Investment research head Chris Oh expects another record year for Mah Sing which he views as the best property stock in the sector as the company is entrepreneurially managed with ambitious plans to grow within Malaysia. Another factor is the company's aggressive sales targets which it has delivered in the past.
“We continue to like Mah Sing for its entrepreneurial management team and high asset turnover business model. The company recently announced a record sales target for 2013 of RM3bil (which is a 20% year-on-year increase) and anticipates further landbank acquisitions through financing via a proposed RM400mil rights issue to be completed by the first half of 2013. The past five-year sales and net earnings compounded growth were 23.1% and 28% respectively. Our view is that Mah Sing will deliver some 20% sales and earnings growth based on its diversified range of products,” says Oh.
Oh feels the stock's valuations look attractive as Mah Sing's shares are trading at a 12-month forward PE of 6 times with a dividend yield of over 6%. He has a “buy” call and target price of RM2.80, which is based on a 30% discount to their sum-of-the-parts revised net asset value of RM3.99.
 The StarBiz

Saturday February 2, 2013

Saturday, February 23, 2013

Eratat Lifestyle – To Ride On China’s Domestic Consumption Theme?

Source: http://www.sharesinv.com/articles/2013/01/22/eratat-lifestyle-to-ride-on-china%E2%80%99s-domestic-consumption-theme/

This article is a repost from Ernest’s Blog
China is slowly changing its reliance on exports to more of a domestic consumption focus. One such company which may be able to ride on this domestic consumption story is Eratat Lifestyle (“Eratat”).
Description Of Eratat
Eratat started as a sports shoe / sportswear company and moved into the design and distribution of lifestyle fashion apparel under its proprietary brand “ERATAT” (“ 鳄莱特”) about 3-4 years ago. Please refer to their company website http://www.eratatgroup.com/v2/ for more information.
Investment Merits
1. Near Term Results Likely To Be Better Without One Off Items
Eratat recognised a one off sales incentive in 4Q11 of RMB51.7m and renovation subsidy RMB41.8m in 1H12. Without these one off items, it is reasonable to assume that 4Q12F and 1H13F results are likely to better off on a year on year comparison.
2. Strongest Catalyst: New Distributors
Eratat has been in talks with new distributors via their 100 percent-owned subsidiary in Shanghai. Discussions have been ongoing for a few months and they are likely to materialise this year. However, impact is likely to be seen in 2H13F and (perhaps) more so in FY14. This is likely to be the strongest catalyst for the company.
3. Right Industry, Albeit Competitive
Eratat is in the right industry and based on China’s macro outlook, the retail industry is likely to ride on the wave of domestic consumption and do well over the next couple of years.
4. Active Investor Relation Efforts
Both Ken Ho, CFO and Kellyn Tan, Eratat’s investor relation (“IR”) have been active in doing IR activities. Unlike other S chips who may be discouraged (due to their low company share price despite their efforts) and stop meeting people, Eratat’s CFO and IR have been actively engaging the investment community despite their low share price last year.
5. Net Cash Per Share Of 15.7 Cents (SGD)
Eratat has no outstanding loans and according to the management, they do not have any bad debts on their accounts receivables for the last five years. For the net cash of 15.7 cents (SGD), it is noteworthy that the net cash fluctuates. They are usually lower in 2Q and 4Q as a significant amount of cash would be placed as trade deposits to their apparel manufacturers to secure delivery of their apparel products.
Investment risks
As with all investments, there are some noteworthy points to take note:
1. Possibility Of Equity Raising
Readers who have been following Eratat understand that Eratat requires significant working capital for their apparel business. Eratat outsources the manufacture of their apparel products to mid or large sized third party manufacturers. These third party manufacturers concurrently manufacture apparel products for high end local and international brands. In order to secure delivery of products, Eratat has to place 50-60 percent as trade deposits at the time of placing orders with them. (They do not have their own apparel manufacturing facility because their current size does not warrant them to have their in house facilities.) In order to expand faster in their apparel business, it is likely that the company may need to raise more cash for their working capital requirements.
2. Usual S Chip Risks Apply
Besides the usual corporate governance risk surrounding S chips, they also face liquidity risk and price risk. Although sentiment has improved since last year, it is still rather fragile. (I believe most investors would still sweat whenever the S chips that they hold halt trading) Eratat’s liquidity has improved markedly since mid-December 2012 but its average 30 day and 100 day exponential moving average (EMA) volumes are still at modest levels of around 2.3 million and 1.3 million of shares respectively.
Valuations – 2.3x FY13F PE; NAV / Share ~ $0.355
Based on Chart 1 below, Eratat has surged 74 percent from the low of around $0.080 in July – Sep 12 to $0.139 on 18 Jan 13. However, its valuations do not appear to be excessive. It trades at around 2.3x FY13F PE. NAV / share is approximately $0.355. Estimated yield is 3.0 percent. SIAS covers this company with a one year target price of $0.240.

Marco Polo Marine: Generating Growth Through Offshore Oil & Gas Exposure And Publicly-Listed Indonesian Subsidiary

Source: http://www.sharesinv.com/articles/2013/02/22/marco-polo-marine-generating-growth-through-offshore-oil-gas-exposure-and-publicly-listed-indonesian-subsidiary/


With the advancing growth in Asia, the marine industry, in particular the offshore oil and gas sector, continues to thrive amidst buoyant demand for energy. Shares Investment was privileged to meet Mr Sean Lee Yun Feng, Chief Executive Officer of Marco Polo Marine Limited in an exclusive interview as the Group, together with its recently-listed Indonesian subsidiary PT Pelayaran Nasional Bina Buana Raya Tbk, gears up to tap on the rising offshore marine market in Asia.

Having reported eight consecutive years of record high revenue, Marco Polo Marine (MPM) turned in yet another set of sterling results for its full year ended 30 September 2012 with an all-time high net profit of $21.3 million. Continuing the growth momentum into the first quarter of financial year 2013, MPM posted a 3.2 percent rise in net profit compared to the same period last year despite a decline in revenue, boosted by an impressive gross profit margin of 38.6 percent.
Reflecting the strong performance, shares of MPM have been climbing higher and is hovering around its 52-week high of $0.44, or up 10.4 percent since the start of this year as of 20 February. With its achievements, it is hard not to take a closer look at the success story of this integrated regional marine logistic company which has steadily grown over the years.
Backed by a decade-long experience in the shipping industry, MPM’s sound execution of business strategies is perhaps one of the key reasons for its success. In 2010, the Group made its foray into the robust offshore oil and gas sector and is now operating a fleet of seven offshore supply vessels (OSVs). More recently, it listed its 49 percent-owned Indonesian subsidiary, PT Pelayaran Nasional Bina Buana Raya Tbk (BBR) on the Indonesia Stock Exchange in January 2013 to tap on the Indonesian offshore oil and gas market characterised by huge demand and a supply shortfall.
Riding The Robust Indonesian Offshore Market 
According to World Bank, Indonesia’s economy is expected to grow 6.3 percent in 2013. Demand is expected to be rising fast given the nation’s consumption of 1.4 million barrels of oil per day, which is projected to grow further as its economy develops, far outstrips its current production of about 940,000 barrels of oil per day.
“We have to bear in mind that it is not the case where there is limited oil and gas in Indonesia but rather, most of the production is currently done onshore. There has been under-investment in the offshore sector and now this segment is playing catch-up. In fact, we view the offshore oil and gas sector in Indonesia to be only at its nascent stage of development.
“As demand continues to grow, the industry can also be expected to move towards more complicated offshore exploration activities and to deeper eastern waters. This implies that there will be a sustained demand for rigs and as a result, more OSVs, indicating strong growth potential for our ship chartering business in the Indonesian offshore market over the mid to long term,” Mr Lee anticipates.
“However, the supply of OSVs in the Indonesian market has been limited due to the Cabotage rules which are stringently enforced. Currently, the Indonesian authorities allow only Indonesian-flagged vessels to operate in Indonesian waters. Among other regulations required of the company such as having to own a 5,000 ton gross registered tonnage vessel within its fleet, for vessels to be Indonesian-flagged, it has to be majority owned, i.e. 51 percent, by Indonesians. This thus creates a high entry barrier for foreign OSV operators,” he added.
Mr Lee elaborates that based on estimates, there are currently only around 20 anchor handling tug supply (AHTS) vessels of more than 5,000 brake horsepower (BHP) operating in Indonesian waters, but the shortage is especially acute at the 8,000 BHP and above level as there are perhaps only five such AHTS vessels which are Indonesian-flagged.
BBR In A Strategic Position
The timely listing of MPM’s BBR is a significant development that allows BBR to benefit from the favourable demand-supply dynamics for vessel owners in Indonesia. Mr Lee opined, “BBR’s listing not only achieves objectives such as fund raising and opening up additional funding channels for expansion, lowering of debt and raising our international profile, but most importantly, BBR would be the platform for MPM to expand its presence in the robust Indonesian offshore market.”
Notably, DMG & Partners pointed out that this massive shortage has resulted in a 15 to 20 percent AHTS charter rate premium in Indonesia compared to international market rates, and would likely benefit MPM as a promising source of high-margin growth.
Through the BBR platform, MPM is certainly in an advantageous position to tap the rising demand and meet the shortfalls in the Indonesian market, especially when BBR currently already owns two of the 8,000 BHP and above AHTS vessels which are less than two years old.
Distinguished Resilience: Setting Itself Apart
Directing the attention to the Shipyard Division, Mr Lee mentions that while there are challenges in the ship building segment especially in the light of strong cost competition from China, MPM’s shipyard remains busy. This is because the shipyard continues to build to fulfil its internal demand, especially for OSVs, by riding on the strong demand from Indonesia and the expansion plans of both MPM and BBR.
In addition, the Group’s focus on more sophisticated ship repair, upgrading and outfitting projects has borne fruits especially with the completion of MPM’s third and its largest dry dock to date of length 190 metres in January 2012 in Batam. It has allowed the Group to move up the value chain with enhanced scale and technical capabilities. Mr Lee emphasised that focusing on sophisticated customisations give the Group an edge in terms of profit margins as many China firms focus more on revenue generation and standardisation of designs.
Mr Lee highlighted, “About 90 percent of our ship repair, outfitting and maintenance works are performed for third parties. We see a very sustainable business for ship repairs in the longer term given the strategic location of the shipyard at Batam, which is less than an hour from Singapore, where hundreds of vessels pass through every day. As such repair and maintenance works are knowledge intensive as well as time and location sensitive, the Group can command better margins being shielded from low-cost competitors. Targeting medium-sized vessels have also helped us to differentiate itself from bigger players in the market. All the above factors have provided support to MPM’s financial performance despite the lull in shipbuilding.”
It is, hence, no wonder that MPM enjoyed a high utilisation rate of 90 percent in FY12 and has been able to maintain an average of around 80 percent utilisation for its dry dock, given its long standing relationships with its repeat clients that are estimated to form 60 to 70 percent of its top line.
Steering Forward
On future plans, Mr Lee remains upbeat on the ship repair segment in its Shipyard Division as well the offshore oil and gas segment with respect to Ship Chartering Division, both being the company’s profit and margin growth drivers.
“We also plan on expanding our footprint in the Asia and Australasia region such as Malaysia, Thailand, Vietnam etc with a focus on the offshore segment,” he shared. Indonesia, in particular, would provide an avenue for strong growth. The Group will be working on expansion plans through investing in more OSVs with a view to shorten the time to market and fulfil the demand for OSVs as well as continually refine and upgrade its services rendered.
Both OCBC Research and DMG & Partners have rated “Buy” on MPM with a target price of $0.56 and $0.61 respectively on its promising prospects in Indonesia. It seems that with its strong footing in the Indonesian offshore market and the positive outlook from its ship repair segment, we can expect more upside potential from MPM as it steers forward.

每股冲破15万美元 柏克夏股价全球最贵

Source: http://www.nanyang.com/node/512679?tid=462


(纽约21日讯)股神巴菲特执掌的柏克夏A类股股价19日收盘突破15万美元大关,创下15.25万美元(47.4万令吉)的历史新高,成为当之无愧的全球最贵股票。
与此同时,柏克夏B类股股价也首次突破100美元,收于101.02美元(313.97令吉)。
20日,柏克夏盘中再度冲高至15.31万美元(47.58万令吉),但随后回落,最终收跌0.98%,报15.10万美元(46.93万令吉)。
过去二十年中,柏克夏股价累计上涨1173%,同期标普500指数累计上涨253%。
今年以来该公司A类股股价已累计上涨9.23%。
柏克夏的前身是一家传统纺织制造公司,后由于经营不善被巴菲特收购,当时该公司股价仅为8美元(24.86令吉)。
巴菲特接手后,在其精心运作下,主营业务转向,目前已成为全球著名的保险集团,同时也成为股神的投资旗舰。

中短期前景保持谨慎 友尼森保留资金稳赚幅

Source: http://www.nanyang.com/node/512700?tid=462


(吉隆坡21日讯)友尼森(Unisem,5005,主板科技股)2012财年第四季业绩表现无法扭转劣势,中短期前景保持谨慎,管理层主张资本保存策略,以确保稳定的盈利和赚幅。
友尼森第四季净亏损扩大至1950万令吉,主要纳入了2200万令吉的资产减值、拨备和注销成本;这也促使友尼森全年亏损扩大至3330万令吉。
不过,分析员正面看好该公司在第四季业绩采取的保守记账决策,把厂房和机械的损值拨备金一次过纳入在末季中。
美国业务增长
友尼森的营业额表现也趋软,不过符合市场预期,尽管来自亚洲和欧洲的营业额分别下跌6%和40%,美国的营业额则增长25%。
该公司管理预计,现财年首季的业绩将持续趋软,因该公司将继续受到库存供应链调整冲击营业额增长,以及二月份较短工作天和农历新年假期的缘故,预计也将拉低收入。
面对着短期盈利风险,友尼森更趋向于专注在资本保存策略上,今年分配的资本开销只有6000万令吉,远低于2011财年的2亿8200万令吉和2012财年的1亿2100万令吉。
该公司将进行多项措施,如需付款合约或联合融资,确保公司的盈利和赚幅维持健全。
半导体领域谨慎乐观
根据半导体工业协会,全球半导体晶片销量在去年12月份持续增长3.8%,从而缩小了年至今下跌幅度,从原来的负3.9%,减少至负2.7%。
肯纳格研究分析员保持谨慎乐观看待半导体领域的复苏,并相信国内科技公司的前景将继续受到电脑需求下跌和长期全球经济不稳定的冲击。
该分析员相信,任何复苏的迹象只有在下半年之后才可能出现。
另外,达证券分析员下调友尼森2013财年和2014财年的营业额预测约10%至11%之间,因而也分别下调该公司在2013财年和2014财年的盈利预测达8.9%和13.0%。
各分析员给予友尼森的评级不一,其中的艾芬投资银行、侨丰投资研究和达证券分别下调目标价至1令吉,99仙和85仙。

Pestech goes global

Source: http://biz.thestar.com.my/news/story.asp?file=/2013/2/23/business/12733163&sec=business


Technology firm aims to be as reputable as Siemens and ABB.
TODAY'S successful technology stories tell us that there is an almost assured way to build a world-class company: zero in on a new or exclusive technology, develop a cutting-edge product, and move fast to grab market share.
What happens when you do the exact opposite? Like latching on to an old or established technology, produce goods which are not very different from what is available, and try to compete in a market where there are already established players?
What are your chances of success? Or would this clearly be a case of misguided corporate bravado?
Consider the case of Pestech International Bhd. It builds facilities to transmit electricity produced by power stations. The industry is a mature one and the technology involved has not changed much over the years. Globally, the industry is dominated by a number of well-known international companies such as Siemens, ABB, Alstom, Toshiba, Mitsubishi and Hyundai.
Pestech is a relatively new homegrown company which first ventured overseas in 2007. In a number of international tenders recently, it won out over some of these more established names, proving that it can be as competitive overseas as it is at home.
The proportion of foreign income as a percentage of its total income has grown from 27% in 2008 to 45% in 2009, 51% in 2010, and 77% in 2011 when total topped RM131mil.
How has Pestech been able to take on the big boys and still come out on top?
Filling a forgotten niche
Paul Lim, chief executive officer of the group, says there is no secret to it. It is a matter of trying to work harder and smarter, and finding a niche where you can perform better than your competitors.
“We call ourselves an integrated power technology company. We specialise in the design, procurement and installation of high voltage substations, transmission lines and laying power cables. This business and the technology behind it have been around a long time there is no mystery to it.
“But what we are able to do is to deliver this whole package the designing, the engineering and the implementation on very competitive term, integrating the best technologies in the industry for the benefit of the customer.
“And so long as we are able to maintain this competitive edge, our opportunity to grow is almost limitless because the demand for electricity is increasing all the time, and so will the need for the accompanying infrastructure,” Lim adds.
He concedes that Pestech currently has no equivalent local competitor in its line of business not in Malaysia, or even in the Asean region. There are a number of electrical contractors offering their services, but no engineering company capable of delivering the full range of engineering services and products for electrical systems from design to procurement to full project implementation.
Surely, this must be one of the unsolved mysteries of the electricity industry? After all, the technology has been available all this while, the demand for transmission infrastructure has been self-evident, and yet no other significant player has emerged on the local scene.
How does one explain this void?
“It is a question I have often also reflected on,” Lim said. “I think in many ways you can say that the electrical business was a “forgotten” business largely because no one imagined that there could be a role for entrepreneurs in it.” He talks with the experience of someone who is familiar with the industry, having worked as an electrical engineer for MNCs before joining Pestech.
“We saw this niche and the entry of Pestech into this business was a very deliberate and carefully planned move. We have since grown step by step in the way we wanted,” Lim said.
“Pestech was founded by my uncle, Lim Ah Hock, a mechanical engineer himself, who is now the executive chairman of the company. It began business in 1991 as a trading house selling electrical products. In 2000, I joined the company and we transformed the company into one that specialises in the design, installation and commissioning of high voltage electrical power substations. We then went on to build transmission lines and lay power cables, finally becoming a full-fledged power grid builder”.
The company's main customer in its early days was Tenaga Nasional Bhd. By 2007 the management felt confident that it had the technical expertise and the experience to bid for jobs overseas.
The company won its first overseas contract that year in Brunei. Since then it has been awarded contracts in Cambodia, Papua New Guinea, Sri Lanka, Ghana and Tanzania.
The company's revenue has increased steadily from RM43.3mil in 2007 to RM51.6mil in 2008, RM86.6mil in 2009, RM114.9mil in 2010 and RM130.9mil in 2011. Competitive edge
Lim cites three main reasons why Pestech has an edge when it bids for projects: First, it offers customers a “complete” solution, ie it undertakes to do the whole job, from designing to supplying, manufacturing, installation, testing and commissioning. This increases efficiency and eliminates the customer's need to appoint different parties for different parts of the project.
Second, it offers customers an “open” solution. Lim says Pestech's practice is to recommend equipment that is best suited to its customers' needs and is under no obligation to recommend any particular brand of equipment. This role as an “integrator” enables Pestech to offer its customers what Lim describes as an “optimum” package. In contrast, MNCs that compete for jobs tend to recommend the use of their own brand name products, and this can limit their competitiveness.
Thirdly, Pestech now has a proven record of successful work done overseas for clients in the public and private sectors. Lim says: “This reputation is critical to our future business.
“But make no mistake,” he adds. “We are not saying we are in the same league as companies like Siemens or ABB or Hyundai. But across a broad range of customer requirements, we are as skilled and as adequately equipped as any of these companies to deliver, and we have proven this many times in the last few years.”
Growth prospects
Pestech was listed on Bursa Malaysia in May last year. Lim says the exercise has given the company a higher profile and the opportunity to secure more business. Its order book is now three times that of 2011, and he expects the momentum to continue.
“Our focus will continue to be on doing business in developing countries, both in Asean and in other parts of Asia as well as Africa.
“Right now, for example, we are bidding for a number of projects in Laos and Myanmar. The business potential in both countries is tremendous, and we feel we are well-positioned to provide the services and facilities they need,” Lim says.
Lim says the Asean region will be significant growth area in the next few years and demand for electricity will increase. “We certainly look forward to doing more business in the countries nearby,” he adds.
“Africa is another big market. We have done work in Tanzania and in Ghana our client was a major mining company. So we are no strangers to Africa and we expect to be busy in that continent too.
“So overall, we project that power grid infrastructure demand in all these markets will grow, and we will grow with it. We expect that most of our project income will be sourced from a fairly diverse base of customers”.
Pestech also wants to increase its non-project income. This comes from the sales of equipment produced in-house that are used in electricity transmission systems and sub-stations. It already manufactures a number of own-brand products and is seeking to enter into technology agreements with established suppliers to manufacture products under licence.
“The sale of these products contributes to about 20% of our earnings at the moment. Our target is to bring this up to 35%-40% within five years,” Lim adds. A global company
How big are Pestech's ambitions?
“The utilities industry is a very conservative industry,” Lim said, “and its growth depends very much on demographics and the growth rate of economies. But we know that the demand for electricity will increase, so the demand for the kind of services we offer will also increase.
“The stable technology in this field works in our favour because it allows us to grow and catch up with the big boys.
“What we are doing in Pestech is to inject an entrepreneurial element into this business. Today we believe we are the largest homegrown EPCC (engineering, procurement, construction and commissioning) in South-East Asia in the power grid building industry.
“We hope that in the course of time we can become a truly global company with a brand name as reputable as that of companies like Siemens and ABB.
Research for this article has been supported by the Ministry of International Trade and Industry.

Friday, February 22, 2013

ROXY-PACIFIC: $862 Million In Property Revenue To Be Recognised Over 4 Years

Source: http://www.nextinsight.net/index.php/story-archive-mainmenu-60/919-2013/6483-roxy-pacific-

HOW MANY businesses can look to the next four years and be certain of a sizeable revenue from its core business? 

Roxy-Pacific Holdings can -- it has S$861.7 million of properties already pre-sold. 

These properties are being progressively built and the sales revenue will be recognised in Roxy's financial statements this year till 2016 according to the percentage of completion (for residential projects) and upon TOP (for commercial projects).

To put the S$861.7 million in perspective, it is equivalent to more than 6X the $138.7 million revenue achieved by Roxy's property development business in FY2012.

Spottiswoode, Kovan & Centropod projects will be key contributors to the $862 m of progress billings.Spottiswoode, Kovan & Centropod projects will be key contributors to the $862 m of progress billings.The S$861.7 million in 'progress billings' is up 44% compared to the end-2011 figure of S$598.6 million. 

In turn, the end-2011 progress billings was up 82% compared to end-2010 (see chart above).

After a dismal 2011 stock performance, Roxy powered up in 2012 on successful property sales.After a dismal 2011 stock performance, Roxy powered up in 2012 on successful property sales.The surging progress billings and the earnings visibility they offered played a no small role in powering up Roxy's stock price 146% last year (see chart below).
Roxy's sales come with strong double-digit gross profit margins, by the way.

The folks at Roxy-Pacific will not just put up their feet, or go for a holiday, for the next four years. 

In fact, they have five land sites to sell, and are working on rolling out property launches there in the next few months. 

In another business segment, hotel ownership, Roxy expects its Grand Mercure Roxy Hotel to continue to benefit from growth in leisure and business travel to Singapore.

In a nutshell, here is a business that will hold strong for the next four years and in fact, chances are, will add even more punch to its performance.

Meanwhile, in various announcements, there are a lot of details of its FY2012 results, including a 13% rise in net profit to $58.3 million and a 20% rise in dividend to 1.594 cent a share.

Check out Roxy's Powerpoint materials and press release and financial statements

In the space below is our value-add -- a report on some of the Qs & As at the results briefing held yesterday.

Q: What's your view on the outlook for the property market after the Government's 7th round of measures to cool the market?

Teo Hong Lim, executive chairman & CEO of Roxy-Pacific. NextInsight file photoTeo Hong Lim, executive chairman & CEO of Roxy-Pacific. NextInsight file photoTeo Hong Lim, CEO(right): We don't really know the impact as there has been only one project which tested the market -- Q Bay. The real test will come in the next few weeks with a few major launches such as the Urban Vista. In my opinion, buying interest in properties is very strong because people are tyring to beat the measly returns from bank accounts.

Q: What's the difference in buying pattern for your projects before and after the cooling measures?

Teo Hong Lim: All the residential projects that we have launched, except for a JV in Eon Shenton, we have sold 100%. Our strategy is to always consider affordability as an important factor. We price correctly. Eon is 90% sold -- and the units that are left are the penthouses. So far, our timing for commercial has also been good. Wis@ Changi is about 90% sold. Centropod is fully sold. 

Q: Tell us about your strategy going forward. Are you still focusing on Singapore?

Teo Hong Lim: Let's talk first about the landbank we have now. We believe in doing things differently, achieving some differentiation. Last 1-2 years, we went for commercial projects, retail freehold, office freehold -- we deemed them as new markets.  We have been able to source for freehold sites quite well. 

One of the areas we targeted was Pasir Panjang. In the last 5-6 months, there were 2 launches. A month ago, a small plot of 10,000 sq ft was sold at about 20% higher than what we paid for our two plots there.

In the Sophia Road and Wilkie Road area, we are also probably the only holders for land to be launched.

In Lorong Lew Lian, we have the biggest plot -- 90,000 sq ft of freehold land. In Kovan, there are some sites but not many. 

Our focus is on freehold land, where we can set our pricing. 

In Pasir Ris and Punggol, if a competitor cuts price or tenders for land at a lower price than you, it's very transparent to the market. There, there are hundreds of units coming up.

We don't want to bid aggressivley for Punggol or Pasir Ris sites and be subject to competitive pricing. As for the future, we have to continue to select the location and timing. 

For overseas, it is an area we will do some review. We have partners who are already overseas, and may work with them.  

Q: Regarding your current landbank, when will you launch the projects?

Teo Hong Lim: We always sell when we are ready. You go to our sites now and you will see the construction of show flats. We will likely launch at the beginning of 2Q. Pricingwise, I don't forsee a need for us to sell at lower prices. 

Q: What is the outlook for the hotel business in terms of the supply and demand dynamics?

Chris Teo, executive director: Supply is picking up. We feel there is a bit of pressure on rates, particularly corporate rates. The volume of traffic should be pretty consistent. 

Teo Hong Lim: Let me share some info that you may not be aware of. Second-timers still have an advantage in terms of remission and refund of ABSD (additional buyer stamp duty).

If you are staying in a HDB flat and buy an uncompleted property, you can apply not to pay the ABSD provided you sell the HDB within 6 months of the TOP of the new property. (See IRAS webpage)

If you stay in a private property and buy an uncompleted property, you have to pay the ABSD first. When the project gets its TOP and you sell the private property, you can get a refund of the ABSD. 

People are not aware of this. It applies to married couples and was released only sometime last year, not at the point of the implementation of the ABSD.

This is in favour of uncompleted projects and the strongest market now are the first-timers and second-timers. Our focus is on them.