Thursday, December 29, 2011

Supportive International in the red - Net Loss of RM1.02m in 3Q2012

Supportive International Holdings Berhad operates mainly as plastic components manufacturer and property developer. It reported its 9M2012 results yesterday. Here's the summary of the result:
1. 3Q2012 Revenue down 41% YoY to RM8.77m, net loss of RM1.02m (vs. RM0.60m made in 3Q2011).
    This is possibly due to losses in property development segment. In 9M2012 segmental result, property development segment registered net loss of RM1.07m while plastic manufacturing profit is RM0.20m.
2. Trading above Book Value at 1.09x Price To Book. Latest Book Value 26.68sen. With share price     close at 29 sen yesterday.
3. My view: With the losses, the announcement still saying "Barring any unforeseen circumstances, the Board expects the financial performance for the remaining periods to be satisfactory". How can it be "satisfactory"? 

Tuesday, December 13, 2011

Kenanga Upgrade BJTOTO to OUTPERFORM

1. YTD 1H12 net earnings of RM197.8m accounted for 54% of our FY12 full year estimate and 50% that of the market consensus.
2. Better results got fuelled by the good luck factor. 2Q12 EPPR of 57.9% was nearly 2% below the 60% theoretical level.
3. BToto declared a 8 sen net DPS in 2Q12 same as the preceding quarter, representing 101.0% of its
2Q12 earnings.
4. Upgrading to OUTPERFORM. Post earnings revision, our DCF derived price target has increased slightly to RM4.52 from RM4.49. We continue to like BToto for its sustainable and attractive 7%-8% gross dividend yield.

Monday, December 12, 2011

CPO drop below RM3,000... plantation stocks may retreat tomorrow

1. CPO prices tumbled RM86 or 2.8% to RM2,998 as of 5.45pm. If critical support above RM3,000 is broken today, it will be negative for plantation stocks tomorrow.
2. Historically, KL Plantation Index tracks CPO prices closely with correlation of > 90%.
3. Based on technical RSI value, here's some of the OVERBOUGHT plantation stocks that are most vulnerable to possible selloff tomorrow:
a) Sarawak Oil Plantation - RSI 77.7
b) Tradewinds Plantation - RSI 75.3
c) BLD Plantation - RSI 72.4

Friday, December 9, 2011

George Kent 9M2011 Result Review, PBT down 54% YoY

George Kent (Malaysia) Berhad is an engineering-based company with diversified business interests in many industries such as water industry, construction and project management. It reported its 9M2011 results yesterday. Here's the summary of the result:
1. 3Q2011 Revenue down 31% to RM31.2m, Profit before tax down 54% to RM4.9m.
    This is due to deferment in the commencement of certain projects as well as deferment in the award
    of certain tenders for supply of meters.
2. Trading at 2011 Annualized PE of 13.7x. Annualized 2011 EPS: 7.28 sen.
3. Trading above Book Value at 1.28x Price To Book. Latest Book Value RM0.78. With share price     close at RM1.00 yesterday.

Thursday, December 8, 2011

A-Rank 1Q2012 Result Review, PBT down 15% YoY

A-Rank Bhd is principally engaged in investment holding and manufacturing and marketing of aluminium billets respectively. It reported its 1Q2012 results yesterday. Here's the summary of the result:
1. Revenue up 5% to RM100.3m.
    This is due to higher business volume as well as a slight increase in average selling prices due to the
    rise in underlying raw material costs.
2. But profit before tax down 15% to RM1.8m.
    Mainly caused by lower margins as a result of the volatility in aluminium prices as well as the stronger
    Malaysian Ringgit which impacted export margins.
3. Trading below Book Value at 0.54x Price To Book. Latest Book Value RM0.78. With share price
    close at RM0.42 yesterday.

Wednesday, December 7, 2011

MMHE downgraded to HOLD at Maybank with TP of RM5.70

4 reasons stated for downgrade:
- delay in projects roll-out
- a likely setback at Sime Darby’s yard (it is mentioned that will only contribute from FY14E)
- grey visibility at Turkmenistan
- higher tax rates

Earnings from 2011E to 2013E cut by 9-29%.

Tactical downgrade to Hold. The delay in projects roll-out, a likely
setback at Sime Darby’s yard, grey visibility at Turkmenistan and higher
tax rates are the 4 key reasons that compel us to cut 2011-13 earnings
forecasts by 9-29%. The slower execution will constrain available yard
space and could see MMHE missing out some projects in 2012. Against
this backdrop, we cut our TP to RM5.70 (20x 2013 PER; -29%). We
also downgrade our call on the stock due to fair valuations at this
juncture although we remain positive over its longer term prospects.

Lowering 2011-13 forecasts by 9-29%. We now expect negligible
contribution from the Sime Darby yard in 2012-13 vs. earlier projected
RM30-150m in net profit contribution p.a. In addition, we now project
zero associate profit contribution in 2012-13 at its Turkmenistan venture
(previously RM29m p.a.) on a more challenging orderbook
replenishment outlook. Our new forecasts also assume a higher tax
rate for the group on unabsorbed allowances on lower yard utilisatio