KLCI Stock - ARMADA / 5210 - 2012 Quarter 1

BUMI ARMADA BERHAD



Company Description

BUMI ARMADA BERHAD engages in the ownership and operation of offshore support vessels in Malaysia. It owns/operates accommodation workbarges/workboats and mooring launches, as well as safety standby/utility, topographic survey, oil terminal support, anchor handling towing support, and platform support vessels to provide logistic support, anchor handling, towing, mooring, rig moving, emergency response, and rescue, as well as fire fighting operations in Malaysia, Brunei, Congo, Nigeria, Mexico, Venezuela, and Caspian. The company also operates floating, production, storage, and offloading (FPSO) systems that offer solutions in remote or deepwater locations in Nigeria and Vietnam. In addition, Bumi Armada provides pipe laying, FPSO/FSO hook up, EPIC contract management, and heavy lifting, as well as flexible, umbilical, structure, mooring, subsea, and floater installation services; and seismic services and light well intervention vessels. Further, the company designs and manages new builds and conversions, such as FPSOs and drill barges; and offers project, safety, and environmental management, as well as quality assurance, quality control, project control, engineering, procurement, construction, commissioning, installation, and start-up services. It also serves clients in South East Asia, India, and Africa. Bumi Armada was incorporated in 1995 and is based in Kuala Lumpur, Malaysia with shore-bases around the globe.

Company Info

Listing Date	2011-07-21
IPO Price	3.03
Market Capital (Capital Size)	11,772,415,632 (Very Large)
Par Value	RM 0.20
Board	Main
Sector	Trading/Services
Major Industry	Floating Production Storage Offloading
Sub Industry	Offshore Support Vessels
Website	http://www.bumiarmada.com/

My Analysis

Forecast P/E now	(4.02-0.025)/0.1573 = 25.40 (Moderate)
Target Price	4.33+0.025 = 4.35 (PE 27.5, EPS 0.1573, DPS 0.025)
Decision	BUY if stock price strong sustain above 4.03
Comment	Revenue decreased 8.2% and also lower than preceding year corresponding quarter 0.1%, eps increased 28.8% and was second consecutive quarter increasing but still lower than preceding year corresponding quarter 15.3%, cash generated from operating not enough to cover financing expenses hence got generated more cash from financing activities to cover other expenses, very high margin, stronger liquidity ratio from low to moderate level now, slightly higher gearing ratio at above moderate level now, strong cash, benefit from strengthening of USD against RM, most segment business got high profit
First Support Price	4.0
Second Support Price	3.7
Risk Rating	MODERATE

Research House

MIDF Target Price	3.7 (2012-02-28)
Alliance Target Price	5.3 (2012-05-29)
HwangDBS Target Price	4 (2012-05-29)
AMMB Target Price	4.65 (2012-06-21)
ECM Target Price	5.1 (2012-06-21)
Maybank Target Price	4.88 (2012-06-21)
OSK Target Price	4.16 (2012-06-21)
CIMB Target Price	4.8 (2012-07-02)

Accounting Ratio

Return on Equity	34.26%
Dividend Yield	0.62%
Gross Profit Margin	49.14%
Operating Profit Margin	38.16%
Net Profit Margin	32.22%
Tax Rate	16.62%
Asset Turnover	0.2211
Net Asset Value Per Share	1.21
Net Tangible Asset per share	1.21
Price/Net Tangible Asset Per Share	3.3
Cash Per Share	0.37
Liquidity Current Ratio	2.4775
Liquidity Quick Ratio	2.4751
Liquidity Cash Ratio	1.3884
Gearing Debt to Equity Ratio	0.9197
Gearing Debt to Asset Ratio	0.478
Working capital per thousand Ringgit sale	77.0%
Days to sell the inventory	1
Days to collect the receivables	204
Days to pay the payables	132

Technical Analysis

SMA 20	4.009 (Uptrend 2 days)
SMA 50	3.969 (Uptrend)
SMA 100	4.103 (Uptrend)
SMA 200	3.948 (Uptrend)
MACD (26d/12d)	-0.001672 ( 0.002569 )
Signal (9)	0.000396 ( 0.000517 )
MACD Histogram	0.002068 (Bearish trend 4 days)
Bolinger Upper Band	4.114
Bolinger Lower Band	3.904

My notes based on 2012 quarter 1 report (number in '000):-
- Higher pbt than FY11Q1 due to:
i) The FPSO segment secured two new FPSO contracts towards the end of the second quarter 2011 - Apache in Australia for the Balnaves field and ONGC in India for the D1 field. The ONGC contract is accounted under share of results of a jointly controlled entity
ii) The OSV segment revenue increased as a result of improved average fleet utilisation
iii) The T&I segment revenue mainly comprises guaranteed days only in the current year to date from the Group’s Armada Installer in Turkmenistan
iv) The OFS segment revenue relates to variation orders from the completed Sepat FSO project comprised conversion and sale of an FSO to Petrofac on a percentage of completion basis

- Estimate next 4Q eps after 2012 Q1 result announced = 3548897*0.12/2930704 = 0.1453, estimate PE on current price 4.02 = 25.4(DPS 0.025)
- Estimate next 4Q eps after 2011 Q4 result announced = 3542715*0.13/2928462 = 0.1573, estimate highest/lowest PE = 28.64/24.13 (DPS 0.025)
- Estimate next 4Q eps after 2011 Q3 result announced = 0.0332*4*1.15 = 0.1527, estimate highest/lowest PE = 27.47/25.05
- Estimate next 4Q eps after 2011 Q2 result announced = 0.0264*4*1.15 = 0.1214, estimate highest/lowest PE = 33.11/26.69

ARMADA latest news (English)

ARMADA latest news (Chinese)



Financial Quarter Summary

a_date	year	qrt	h_price	l_price	div	roe	c_roe	rev	c_rev	pbt	c_pbt	prof	c_prof	eps	c_eps	asset	liab	mino	equi	cfo	cfi	cff	cash	fcf	net	final	share	c_share	m_cap	date	gros_m	oper_m	prof_m	vat	asset_t	pe	navps	ntaps	p/ntaps	cps	l_cur	l_qui	l_cash	g_de	g_da	avg_w	inv_d	rec_d	pay_d
2012-05-28	2012	1	N/A	N/A	-	2.53%	2.53%	335112	335112	107978	107978	89709	89709	0.0306	0.0306	6798599	3249702	15361	3548897	108351	209966	46309	1234974	101615	147924	1087050	2930704	2930704	11693508	2012-03-31	49.14%	38.16%	32.22%	16.62%	0.2211	-	1.21	1.21	3.3	0.37	2.4775	2.4751	1.3884	0.9197	0.478	77.0%	1	204	132
2012-02-27	2011	4	4.53	3.82	0.025	14.26%	41.10%	370854	1543896	153505	435890	124761	359672	0.0426	0.1463	6936242	3393527	14697	3542715	330246	1167615	1832163	248257	837369	994794	1243051	2928462	2457973	11743132	2011-12-31	49.95%	45.12%	41.39%	17.30%	0.2226	27.4041	1.44	1.43	2.8	0.43	2.6989	2.6969	1.5583	0.9619	0.4892	88.1%	1	213	135
2011-11-21	2011	3	4.22	3.85	-	10.58%	26.84%	403921	1173042	111249	282385	92578	234911	0.0332	0.1026	6581988	3154936	13208	3427052	181001	953555	1507692	250401	772554	735138	985539	2788404	2288694	11069963	2011-09-30	44.43%	31.77%	27.54%	14.37%	0.2346	-	1.49	1.49	2.66	0.36	1.4674	1.4652	0.7596	0.9242	0.4793	39.6%	1	215	180
2011-08-25	2011	2	4.02	3.24	-	6.89%	16.26%	392962	769121	75663	171136	60259	142333	0.0264	0.0623	5376711	4025253	10523	1351458	187982	701156	583236	241347	513174	70062	311409	2284200	2284200	8679960	2011-06-30	36.38%	27.78%	19.25%	19.33%	0.2733	-	0.59	0.59	6.44	0.14	0.4447	0.4428	0.1447	3.0018	0.7486	-83.2%	2	157	171
N/A	2011	1	N/A	N/A	-	9.38%	9.38%	376159	376159	95473	95473	82074	82074	0.0364	0.0364	N/A	N/A	-	N/A	103423	361295	460677	241052	257872	202805	443857	2254795	2254795	N/A	2011-03-31	40.70%	30.16%	25.38%	14.03%	N/A	-	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-	N/A	N/A
N/A	2010	4	N/A	N/A	-	N/A	N/A	371167	1241383	121377	387474	111428	354963	0.0503	0.1602	4795467	3920365	567	875102	255367	988384	734834	243081	733017	1817	244898	2215230	2215230	N/A	2010-12-31	45.46%	35.65%	32.70%	8.20%	0.2041	-	0.39	0.39	N/A	0.13	0.4052	0.4046	0.1463	4.4828	0.8175	-115.3%	1	175	339
N/A	2010	3	N/A	N/A	-	N/A	N/A	328901	870216	110407	266097	101131	243535	0.0498	0.1199	N/A	N/A	-	N/A	146868	770521	509067	262852	623653	114586	148266	2030730	2030730	N/A	2010-09-30	56.46%	40.98%	33.57%	8.40%	N/A	-	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-	N/A	N/A
N/A	2010	2	N/A	N/A	-	N/A	N/A	278854	541315	81819	155690	74710	142404	0.0367	0.0701	N/A	N/A	-	N/A	115694	541875	300287	256282	426181	125894	130388	2034164	2030723	N/A	2010-06-30	46.66%	38.40%	29.34%	8.69%	N/A	-	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	N/A	-	N/A	N/A

Financial Quarter Balance Sheet

year	qrt	Accrued lease rentals (A-0)	Deferred tax assets (A-0)	Derivative financial assets (A-0)	Goodwill on consolidation (A-0)	Investment in jointly controlled entity (A-0)	Other investments (A-0)	Property, plant and equipment (A-0)	Accrued lease rentals (A-1)	Amount due from customers (A-1)	Amount due from jointly controlled entity (A-1)	Cash and cash equivalents (A-1)	Current asset classified as held for sales (A-1)	Current tax assets (A-1)	Derivative financial assets (A-1)	Inventories (A-1)	Other receivables, deposits and prepayments (A-1)	Trade receivables (A-1)	Deferred tax liabilities (L-0)	Derivative financial liabilities (L-0)	Hire purchase liabilities (L-0)	Loans & borrowings (L-0)	Amount due to customers (L-1)	Amounts due to Jointly Controlled Entities (L-1)	Current tax liabilities (L-1)	Derivative financial liabilities (L-1)	Hire purchase liabilities (L-1)	Loans & borrowings (L-1)	Payables and accruals (L-1)	Trade and other payables (L-1)	Minority interest (M-1)
2012	1	427909	4251	5592	1411	157210	7427	4253382	398505	52793	46697	1087950	1640	7468	2266	1914	79374	262810	22324	8441	333	2434994	-	-	7377	12318	372	476983	153246	133314	15361
2011	4	409458	3811	1240	1411	151258	7427	4201167	415898	53205	27682	1247416	1640	8948	1102	1550	82392	320637	17415	15774	-	2559826	-	-	27644	10749	804	447404	193843	120068	14697
2011	3	345185	5725	-	1411	92749	5586	4213436	432624	63097	94202	992827	3065	7502	2875	2957	57119	261628	11400	-	4	1836544	-	17789	16596	25042	898	846263	263905	136495	13208
2011	2	300953	2995	-	1411	10418	5585	4075685	337582	-	30916	318774	3065	7502	14290	4348	55171	208016	3253	-	11	1819248	27231	5290	12001	9511	989	1780424	262224	105071	10523
2010	4	292256	4190	-	1411	9799	3778	3714989	218017	-	25123	277684	-	9135	12126	1123	36193	189643	1786	-	819	2019890	30377	-	10825	8699	402	1397746	222445	227376	567

Financial Quarter Income Statement

year	qrt	Revenue	Income tax expense	Cost of sales	Finance/interest costs	Other income	Administrative/Operating expenses	Minority interest	Share of profit/ (loss) of associates	Selling and distribution costs	After tax effect	Share of net profit of jointly controlled entity
2012	1	335112	17941	170451	31665	16060	26356	328	-	26492	-	11770
2011	4	370854	26549	185599	25606	18946	22748	2195	-	14129	-	11787
2011	3	403921	15986	224441	33260	5718	31409	2685	-	25456	-	16176
2011	2	392962	14625	249997	33179	8309	20237	779	-	21885	-	310
2011	1	376159	13399	223058	17141	4620	17535	-	-	26739	-	833
2010	4	371167	9949	202423	11642	16579	44101	-	357	8893	1052	5
2010	3	328901	9276	143212	25077	3192	21894	-	357	32194	1052	4
2010	2	278854	7109	148747	25955	13248	17061	-	357	19211	1052	4

Financial Quarter Segments Revenue

year	qrt	Offshore Support Vessels	Floating Production Storage Offloading system	Transport and Installation
2012	1	114229	165910	51295
2011	4	134402	176219	53107
2011	3	133566	177529	47517
2011	2	117138	129084	67844
2011	1	97876	125296	73850
2010	4	104812	120328	146027
2010	3	101648	142587	84666
2010	2	110170	131112	37572

Financial Quarter Segments Profit

year	qrt	Offshore Support Vessels	Floating Production Storage Offloading system	Transport and Installation
2012	1	19938	53879	35019
2011	4	45166	65042	33156
2011	3	39575	64852	8164
2011	2	20213	33820	41409
2011	1	12163	38136	53144
2010	4	10016	39332	66402
2010	3	35079	39423	57099
2010	2	22557	46307	24971

Short form reference
a_date = announcement date, yr = financial year end, qrt = quarter
h_price = stock highest price during the quarter, l_price = stock lowest price during the quarter
div = dividend recommend or declare in the quarter, roe = return on equity
c_roe = cumulative of return on equity during the financial year
rev = revenue in the current quarter, c_rev = cumulative of revenue during the financial year
pbt = profit before tax in the current quarter, c_pbt = cumulative of profit before tax during the financial year
eps = earnings per share in the current quarter, c_eps = cumulative of earnings per share during the financial year
asset = total asset, liab = total liability, mino = minority interest, equi = total equity
cfo = net cash flow from operating activities, cfi = net cash flow from investing activities
cff = net cash flow from financing activities, cash = cash and cash equivalents as at beginning of financial year
final = cash and cash equivalents as at current financial period ended
share = diluted/basic weighted average number of ordinary shares
c_share = cumulative of diluted/basic weighted average number of ordinary shares during the financial year
m_cap = market capital at announcement date of quarterly report, date = current financial period ended date
prof_m = profit margin, vat = income tax rate, pe = price earning per share ratio of recent four quarter
navps = net asset value per share, ntaps = net tangible asset per share, cps = cash per share
l_cur = liquidity current ratio, l_qui = liquidity quick ratio, l_cash = liquidity cash ratio
g_de = gearing debt to equity ratio, g_da = gearing debt to assets ratio
avg_w = working capital per thousand Ringgit sale
inv_d = days to sell the inventory, rec_d = days to collect the receivables
pay_d = days to pay the payables

CURRENT

---

●CHANGES IN SHAREHOLDING
●ANNUAL REPORTS

HISTORICAL

---

●CHANGES IN SHAREHOLDING

ARCHIVES

---

●CHANGES IN SHAREHOLDING