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Louis Yap Investment

Author: LouisYap   |   Latest post: Tue, 11 Feb 2020, 1:44 PM

 

[ECONBHD (5253) - Company AGM for Ground Piling Details]

Author:   |    Publish date:


[ECONBHD (5253) - Company AGM for Ground Piling Details]

 

 

 

 Details:
Group FY2019 Turnover: RM663.3 mil
Group FY2019 profit: RM25.5 mil
Dividend: 0.5 sen per share
Cash and bank deposits: 40.1mil
Loan: 73.5
Gearing: 0.08x

 

 Currently:
Order Book: RM 920 mil
Bidding Value: RM 300 mil
Ongoing projects: 27 Projects
FY2019 projects received: 643.7 mil

 

 Engineering update:
1) Pavillion Damansara Heights
The first phase is underway-valued at RM 570.4mil
Phase 2 (Package 1) completed-worth RM 18mil
Phase 2 (Package 2) Ongoing-Value RM 122mil
Phase 2 (Package 3) Ongoing-Value RM 209.3mil

 

2) LRT 3-Matching GS04, ongoing-value RM 208.7mil
3) TNB Comprehensive Development, In Progress-Value RM 119.1mil
4) Gemas-Johor Bahru EDTP, ongoing – value RM 69.8mil
5) Tropicana Gardens, in progress – worth RM 44mil
6) Tropicana Metropark, in progress – worth RM 20.8mil

 

 Q & A session:

 

 Q: Why the company was performance poor on last year? In the annual report, there were two project cost overruns and Impairment of receivable. Why? Do you have any actions to prevent this to happen again?

 

A: Because the government changed and they wanted us to reduce costs, 2 Infrastructure Projects were temporarily put on hold. Although the project was temporarily put on hold, at that time we still needed to pay our employees, and of course there were other expenses. But both projects have already started and are almost finished. These things will never happen again. As for Impairment, it's about RM 15mil. For the time being, we can't get this debt back in the short time period. We have to work harder.

 

 Q: Can you explain the profitability of the Infrastructure and Piling business?

 

A: This is our business secret, hence I cannot tell you in detail. In summary, our profit is about 10-12%. The profitability of Piling's business will be higher, and the risk will be smaller. When the project is completed, we will also ask the customer to pay the money back to the new developer.

 

Management stated that the downturn in construction and real estate also affected the company indirectly. Investors need to wait for the return of real estate and construction.

 

The stock price slowly climbed from the bottom from this year and today's stand at RM 0.735, which proves that investors' confidence in the company has built up. Management also indicated that they would not bid too many projects at once, after all, they could not finish. The company will maintain a certain Order Book, but also tend to be stable and consistent profit.

 

 

Louis Yap

Facebook:

https://www.facebook.com/louisinvestment/

 

Web Site:

https://www.wealtharchitect2u.com/

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Labels: ECONBHD

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Chart Stock Name Last Change Volume 
ECONBHD 0.66 -0.05 (7.04%) 3,215,400 

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