Bull markets are born on pessimism, grow on scepticism, mature on optimism and die on euphoria.

Wednesday, March 20, 2013

~ prEstArIAng bErhAd Q412 ~

Prestariang, the politic related counter I am following all this while had just released its latest 4th quarter report fortnight ago ..

From the report ..

  • 4th quarter revenue dropped around 25% q-o-q. Consequently, profit before tax dropped 12% compare with same quarter previous year. EPS for 4th quarter stayed flat at 4.72sen. The dropping in revenue was mainly due to lower revenue in the ICT training and Certification, Project 3P where it had been fully delivered in the preceding quarter. 
  • Expected the price can goes up to Rm1.3 based on the EPS of 16.94sen times PE ratio of 8. 
  • For full year 2012, it recorded an improving result with around 17% profit before tax growth and 5% EPS growth. Profit margin was improved to 33.84%. Higher profit margin was due to contribution from IC Citizen Certification project. 
  • At its balance sheet, it has RM61m cash which equivalent to 27.86sen cash in hands per share. Borrowings are low at RM1.6m. Retained earnings recorded 33.6% growth. Full year ROE is high at 46.73. 
  • Full year dividends is 10sen per share compare with 8.0sen per share in year 2011. 
  • In terms of segment review for year 2012, ICT training and certification segment had contributed 30% of its revenue from 25% in previous year. 
  • Prestariang Systems sdn bhd, the main subsidiary of the Group will enjoy full exemption from income tax on its statutory income from pioneer activities until June 2015. This will at least help to maintain part of its earning for few more years. 

Prestariang Berhad performed share buy back at month of Feb at a market price region of RM1.02~1.04. Perhaps these price will served as the supportive price to buy in. I still fond of this company for its attractive dividend yield, earning growth from the new university segment, high cash with low gearing ratio and low PE but there is a risk with its connection with the government as the contracts may not sustainable if the opposition parties form the government 

No comments:

Post a Comment

What do you think about this post? Looking forward from your comments :)