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

Monday, March 18, 2013

~ skp rEsOUrcEs Q3FY12 ~

SKP Resources had just announced its latest 3rd quarter report for financial year 2012 a fortnight ago. The biggest highlight of this quarter is nothing but of course its sudden drop in revenue. 

  • Revenue for this quarter dropped 26.1% y-o-y.
  • Net profit & EPS had dropped ~18% y-o-y too while profit margin increased from 9.6% to 10.7%. Cumulative quarter showed improving result thanks to strong first half.
  • Expect the full year EPS will be around 4.8cents if the 4th quarter shows similar result of this quarter which is 1.08cents, down from 5.2cents expected earlier. Its PE is around 6.67 based on today price of 32 cents and 4.8cents EPS. 
  • This had caused the full year dividend to be around 2.4 cents based on the 50% dividend policy. Given the first interim dividend of 1.3 cents that given out earlier. There will be around 1.1 cents dividend more will be distributed for this financial year. 
  • Current ratio and liquidity remains strong with no borrowings at all. Cash flow increase to RM80m from RM61m which translated into 8.9 cents cash per share. 
  • Total equity increased to RM193m. 
  • ROE remained good with 0.048/0.21 = 22.86

Quarter report did mention the sudden drop in revenue and profit were due to lower sales orders from customers during this quarter but failed to explain more in details regarding how they going to improve the result. 

The director still disposing his shares via on and off market without any sign of reason. Good thing is Tabung Haji has newly enter SKP's family by holding around 5% shares in hands. 

SKP still remains one of my favourites due to its high cash in hands, ROE and dividend yield. But for now, just need to monitor. 

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