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

Wednesday, March 27, 2013

~ AmFirst REIT Q3FY12 ~

AmFirst REIT, the only REIT I have been monitoring all this while had just announced its latest 3rd quarter report for financial year 2012 few weeks ago .. 

Highlight as below;

  • Revenue and profit from the newly acquired Jaya 99 in Melacca will starts contribute to AmFirst REIT's revenue starting from this quarter. 
  • Revenue and net profit for this quarter increased 12.4% and 21.3% respectively while profit margin improved to 44.04% from 40.8% compared with Q3FY11. 
  • Total assets increased to RM1.28b from RM1.2b in Q2FY12 due to the new acquisition of Jaya 99.
  • Borrowings increased to RM427.9m from RM345.1m which the gearing ratio increased to 33.4% from 28.7% in Q2FY12 with average interest rate of 4.37%.
  • NAV per unit dropped to RM1.1935 from RM1.2075. 
  • Not much change in terms of the occupancy rate compared with preceding quarter.
  • EPU is 1.78sen for this quarter, foresee it can reaches 7.2sen EPU for full year 2013. DPU will be around 6.5 sen if based on 90% dividend policy. 
  • Lowest price for this quarter was RM1.04. 
REIT provides a good and stable income to the investors without much abrupt changes of its revenue sources. Bad thing is AmFirst's rental sources which is the commercial office & retail type. Office market which proned to the external economic that affected the supply and demand relationship remained a good challenging job to do. 

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 

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.