28 November 2014

Keong Hong Full Year Report Summary - November 2014

Keong Hong recorded total revenue of S$272M, an increase of 85% yoy compared to previous year, but net profit dropped by 10% to S$20M. Gross profit margin and net profit margin are 11.12% and 7.21% respectively. The decrease in profit margin is mainly due to the product mix and increase in construction costs admist intense competition as well as higher labor costs due to government labor tightening policy. 

The company announced a final 1.25 cents dividend or total 2.25 cents dividend, which translated to 5.7% full year dividend yield based on the market price of 39 cents, and PE ratio and PB ratio are 4.6X and 1.14X. 

27 November 2014

BRC Asia - Full Year Report Summary - November 2014

Singapore, 26 November 2014 – SGX-Mainboard listed BRC Asia Limited (“BRC” or “The Group”), one of the largest prefabricated steel reinforcement providers in Singapore, reported net profit of S$28.4 million on revenue of S$397.4 million for its financial year ended 30 September 2014 (“FY2014”), which were 20% and 7% lower respectively when compared with the preceding financial year ended 30 September 2013 (“FY2013”). This was despite having achieved a record sales volume in FY2014 in a booming local construction market. The key reason was declining selling prices which fell faster than steel costs due to intensifying competition.

Financial Highlights of BRC Asia

26 November 2014

Sim Lian Annual Report 2014 Quick Analysis - November 2014

Sim Lian group is a local construction company that ventures into property development and property investment in Singapore as well as in oversea (Australia). The portfolio of developments at home now include residential, commercial and integrated developments in key locations.

Financial Highlights

Income Statement
The group achieved total revenue of S$715M for FY 2014, a 3.7% drop from a year ago. Net profit however showed 2.3% improvement to S$172M. There are several reasons attributed to this:

  1. Improvement in gross profit margin - 30.19% compared to 27.21% a year ago, which I believe is due mainly to changes in product mix as well as better operating efficiency.  
  2. Increase in other operating income - S$7.7m compared to S$5.8m last year, due mainly to increase in interest income and other rental and sundry income. 
  3. Shares of results of joint ventures, net of tax increased to S$22.5M from S$11.7M previous year.  

08 November 2014

Wee Hur - Another Record Year this Year - November 2014

According to the latest quarterly report release yesterday, Wee Hur showed a great improvement in both revenue and net profit for 9mth period ended September 2014, as one of its Industrial project obtained TOP on August 2014. Wee Hur easily achieved S$102 Million net profit with 3 months to go for current financial year. As this is a record year for Wee Hur, I believe that the dividend payout will not be lesser than 4 cents as per paid during FY2012.

I would like to say thank you to my friend who introduced this counter to me, as I would not know if it could achieve this good result this year as most of the revenue can be recognized after the TOP (e.g. HDB, EC, Commercial, Industrial, foreign properties etc). This makes us more difficult in predicting / forecasting the revenue as well as the profit for a property development company, and it will show a very volatility of the revenue and profitability trend since 2011 (the implementation of FRS115).

Nonetheless, I believe that it is now bear market for real estate market, as there is lesser transaction done on market. But it may also a good time to buy the land piece at cheap price as what Wee Hur did for an acquisition of industrial land in Woodlands which it targeted to launch it by next year (FY2015). I believe that with prudent care and good execution, it will achieve a good take up rate for the projects on hand. It maybe a good time for long term investors who try to accumulate those cheap property stocks before the market rebound later (perhaps 2 years time after Singapore GE??).

As for its venture in China, it is still in Due Diligence stage so that I believe that the profit may not be kicked in soon. As for dormitory business, it will be in full operation only by December 2014 and let us see if it could provide a good recurring income to the group or not from next year onward.
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