Company Info
My Analysis
Research House
Accounting Ratio
My notes based on 2011 quarter 2 report (number in '000):-
- The Group recorded operating revenues of RM786 million for the current quarter which represents a decline of 25.1% over the corresponding quarter of the preceding year, attributable mainly to the Construction, Property and Industry divisions. Whilst construction works at new major projects such as the Grand Hyatt in Kuala Lumpur and Besraya Highway Extension projects are expected to go full-swing later in the current financial year, the delays in some of the overseas projects and the substantial completion of major construction projects in the 4th quarter of the last financial year were the primary causes of the decline in construction revenue. Meanwhile property revenue have decreased compared to the corresponding quarter of last year mainly because a substantial portion of the Group’s current property portfolio comprises projects that were launched only in recent quarters and are still in early stages of construction such as in The Light development in Penang. Additionally lower selling prices and deliveries of building materials also resulted in the Group’s Industry division reporting a 19.6% decline in revenue
- On the other hand, the Group’s operating profit before tax for the current quarter rose by 51.7% to RM198 million compared to RM131 million in the preceding year’s corresponding quarter following higher crude palm oil prices and foreign exchange translation gain of RM31 million in the Group’s Infrastructure division
- Over the year to date, the Group’s operating revenue decreased by 19.9% while the Group’s pre-tax profit increased by 48.2% mainly due to higher property margins, higher crude palm oil prices and higher net foreign exchange translation gains in the Group’s Infrastructure division
- The Group recorded a 20.3% decline in operating revenue mainly attributable to lower revenue recorded by the Group’s Construction, Property and Industry divisions. The Group’s pre-tax profit on the other hand rose by 10.8% mainly attributable to a 66.9% increase in Plantation pre-tax profits following higher crude palm oil prices and further boosted by foreign exchange translation gains in the Group’s Infrastructure Division amounting to RM31 million in the current quarter
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0765*4*1.1 = 0.3366, estimate PE on current price 6.7 = 19.58(DPS 0.11)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0662*4*1.05 = 0.278, estimate highest/lowest PE = 20.36/17.3 (DPS 0.11)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.2484*0.9 = 0.2236 (10% drop, exclude foreign exchange gained), estimate highest/lowest PE = 22.58/19.5 (DPS 0.11)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0621*4 = 0.2484 (expecting revenue and profit recover hence no decrease on eps), estimate highest/lowest PE = 20.53/17.43 (DPS 0.05)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.2556, estimate highest/lowest PE = 19.13/16.55 (DPS 0.05)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.271, estimate highest/lowest PE = 25.13/15.68 (DPS 0.05)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.3251, estimate highest/lowest PE = 19.53/16.15 (DPS 0.05)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.2612, estimate highest/lowest PE = 21.06/12.44 (DPS 0.25)
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| Market Capital (Capital Size) | 9,051,920,262 (Very Large) |
| Par Value | RM 1.00 |
My Analysis
| Forecast P/E now | (6.7-0.11)/0.3366 = 19.58 (High) |
| Target Price | 5.39+0.11 = 5.50 (PE 16.0, EPS 0.3366, DPS 0.11) |
| Decision | NOT BUY unless price below 5.1 |
| Comment | Revenue decreased and also lower than preceding year corresponding quarter, eps increased and also higher than preceding year corresponding quarter, free and net cash flow increased, liquidity ratio increasing to moderate level now, high gearing ratio, all accounting period also long time, CPO price increasing, construction contract increased |
| First Support Price | 5.5 |
| Second Support Price | 5.0 |
| Risk Rating | HIGH |
Research House
| Maybank Target Price | 6.4 (2010-11-24) |
| MIDF Target Price | 6.44 (2010-11-24) |
| ECM Target Price | 5.71 (2010-12-03) |
| RHB Target Price | 6.16 (2010-12-03) |
| OSK Target Price | 6.6 (2010-12-20) |
| AMMB Target Price | 7.52 (2010-12-30) |
| TA Target Price | 6.35 (2011-01-03) |
| HwangDBS Target Price | 7.5 (2011-01-11) |
Accounting Ratio
| Return on Equity | 6.26% |
| Dividend Yield | 2.24% |
| Profit Margin | 25.25% |
| Tax Rate | 21.85% |
| Asset Turnover | 0.2869 |
| Net Asset Value Per Share | 3.74 |
| Net Tangible Asset per share | 3.68 |
| Price/Net Tangible Asset Per Share | 1.55 |
| Cash Per Share | 1.13 |
| Liquidity Current Ratio | 2.4407 |
| Liquidity Quick Ratio | 1.5475 |
| Liquidity Cash Ratio | 0.6591 |
| Gearing Debt to Equity Ratio | 1.1714 |
| Gearing Debt to Asset Ratio | 0.4798 |
| Working capital per thousand Ringgit sale | 94.8% |
| Days to sell the inventory | 281 |
| Days to collect the receivables | 173 |
| Days to pay the payables | 196 |
My notes based on 2011 quarter 2 report (number in '000):-
- The Group recorded operating revenues of RM786 million for the current quarter which represents a decline of 25.1% over the corresponding quarter of the preceding year, attributable mainly to the Construction, Property and Industry divisions. Whilst construction works at new major projects such as the Grand Hyatt in Kuala Lumpur and Besraya Highway Extension projects are expected to go full-swing later in the current financial year, the delays in some of the overseas projects and the substantial completion of major construction projects in the 4th quarter of the last financial year were the primary causes of the decline in construction revenue. Meanwhile property revenue have decreased compared to the corresponding quarter of last year mainly because a substantial portion of the Group’s current property portfolio comprises projects that were launched only in recent quarters and are still in early stages of construction such as in The Light development in Penang. Additionally lower selling prices and deliveries of building materials also resulted in the Group’s Industry division reporting a 19.6% decline in revenue
- On the other hand, the Group’s operating profit before tax for the current quarter rose by 51.7% to RM198 million compared to RM131 million in the preceding year’s corresponding quarter following higher crude palm oil prices and foreign exchange translation gain of RM31 million in the Group’s Infrastructure division
- Over the year to date, the Group’s operating revenue decreased by 19.9% while the Group’s pre-tax profit increased by 48.2% mainly due to higher property margins, higher crude palm oil prices and higher net foreign exchange translation gains in the Group’s Infrastructure division
- The Group recorded a 20.3% decline in operating revenue mainly attributable to lower revenue recorded by the Group’s Construction, Property and Industry divisions. The Group’s pre-tax profit on the other hand rose by 10.8% mainly attributable to a 66.9% increase in Plantation pre-tax profits following higher crude palm oil prices and further boosted by foreign exchange translation gains in the Group’s Infrastructure Division amounting to RM31 million in the current quarter
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0765*4*1.1 = 0.3366, estimate PE on current price 6.7 = 19.58(DPS 0.11)
- Estimate next 4Q eps after 2011 Q1 result announced = 0.0662*4*1.05 = 0.278, estimate highest/lowest PE = 20.36/17.3 (DPS 0.11)
- Estimate next 4Q eps after 2010 Q4 result announced = 0.2484*0.9 = 0.2236 (10% drop, exclude foreign exchange gained), estimate highest/lowest PE = 22.58/19.5 (DPS 0.11)
- Estimate next 4Q eps after 2010 Q3 result announced = 0.0621*4 = 0.2484 (expecting revenue and profit recover hence no decrease on eps), estimate highest/lowest PE = 20.53/17.43 (DPS 0.05)
- Estimate next 4Q eps after 2010 Q2 result announced = 0.2556, estimate highest/lowest PE = 19.13/16.55 (DPS 0.05)
- Estimate next 4Q eps after 2010 Q1 result announced = 0.271, estimate highest/lowest PE = 25.13/15.68 (DPS 0.05)
- Estimate next 4Q eps after 2009 Q4 result announced = 0.3251, estimate highest/lowest PE = 19.53/16.15 (DPS 0.05)
- Estimate next 4Q eps after 2009 Q3 result announced = 0.2612, estimate highest/lowest PE = 21.06/12.44 (DPS 0.25)
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