Highlights
KLSE: ELKDESA (5228)       ELK-DESA RESOURCES BHD MAIN : Finance
Last Price Today's Change   Day's Range   Trading Volume
1.40   0.00 (0.00%)  1.38 - 1.41  327,700
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Overview

Market Cap: 416 Million
NOSH: 297 Million
Avg Volume (4 weeks):130,476
4 Weeks Range:1.30 - 1.41
4 Weeks Price Volatility (%):
90.91%
52 Weeks Range:1.09 - 1.77
52 Weeks Price Volatility (%):
45.59%
Average Price Target: 1.82
Price Target Upside/Downside: +0.42
Stamp duty exempted for year 2020

Financial Highlight

Latest Quarter | Ann. Date 31-Dec-2019 [#3]  |  18-Feb-2020
Next QR | Est. Ann. Date: 31-Mar-2020  |  21-May-2020
T4Q P/E | EY: 11.29  |  8.85%
T4Q DY | Payout %: 4.99%  |  56.35%
T4Q NAPS | P/NAPS: 1.4098  |  0.99
T4Q NP Margin | ROE: 25.77%  |  8.79%

Headlines

Date Subject
27-Apr-2020 [转贴] ELK-Desa Resources Berhad - E.E. CAMERON
07-Apr-2020 Technical Buy - ELKDESA (5228)
06-Apr-2020 Banking - A More Negative Outlook in 2020
01-Apr-2020 Banking - Feb20: Muted Loans Growth Expected; Uptick in GIL Ratio
20-Mar-2020 Banking - Releasing More Liquidity Into the System
10-Mar-2020 Banking - 4Q19: An Unexciting Period; Caution Lies Ahead
03-Mar-2020 Banking (NEUTRAL, Maintain) - a 25bps Rate Cut to Stimulate the Economy
02-Mar-2020 Banking (NEUTRAL, Maintain) - Jan20: Moderation in Loans Growth After a Strong Dec
20-Feb-2020 Mplus Market Pulse - 20 Feb 2020
19-Feb-2020 ELK-Desa - Slower Macro Outlook to Moderate Growth
05-Feb-2020 ELK-Desa - 2020 Outlook Remains Intact
10-Dec-2019 Banking - Cautious Times Ahead
25-Nov-2019 [转贴] 永联资源 ELKDESA – 2019年股东大会 - 从事二手车贷款业务 - RH Research
20-Nov-2019 ELK-Desa - Another Favourable Quarter
30-Oct-2019 Trading Stocks - ELK-Desa Resources
30-Oct-2019 Daily technical highlights – (D&O, ELKDESA)
30-Oct-2019 Stocks on Radar - ELK-Desa Resources (5228)
19-Sep-2019 Banking (Neutral, Maintain) - A More Cautious Outlook
13-Sep-2019 10 things I learned from the 2019 ELK-Desa Resources AGM - Young Jia Yi
23-Aug-2019 ELK-Desa - a Robust Start in 1QFY20

Business Background

ELK-Desa Resources Bhd is Malaysian company investment holding company. The company’s business segments are Hire-purchase financing and other integrated services and Trading of furniture. The Hire-purchase financing and other integrated services segment is involved in the business of hire purchase financing for used motor vehicles as well as selling general insurance policies as an insurance agent and Trading of furniture segment is involved in the business of trading, export, wholesaling and manufacturing of furniture. The company earns the majority of its revenue from hire-purchase financing.
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Meng as a financing institution, funds is important to company. there was a few times company having rights issue to increase the funds. although the treasury is not a big amount as past rights issue, but still worth good amount of money which can help the company business. if they can make use of it, selling to get some funds drive more sells or reduce financing cost, i think that is much better option
11/03/2019 4:51 PM
smissions Rights issue, rights issue, rights issue, cancel shares. Also advertises on Google Ads.
04/04/2019 2:54 PM
tracylim If not mistaken the management already promised no more right issue...
04/04/2019 6:28 PM
sleang another set of fantastic results! well done~!
21/05/2019 6:22 PM
tracylim Really proud of ELK, particularly in the midst of uncertainties. Now we know why the boss kept on buying. Well done!
23/05/2019 7:52 AM
Meng profit can be go higher but drag down by the furniture business. they can maintain a lower impairment on the hire purchase business, i think they should be able to do the same to the furniture business too.
23/05/2019 9:32 AM
Meng by comparing the annually result, the hire purchase business really doing great which revenue and profit before tax increased 16% and 23% from financial year 2018. the company really doing well to improve the loan quality and significant reduce the impairment allowance. total hire purchase receivables grow 23% but the impairment reduced instead, well done. block discounting increase intact with company direction. but there is not perfection, the increase of workforce recently not yet see to have any positive effect to the business yet.

for furniture business, i think after all these years, although see the improvement, but still the profit margin still very low, just passed 2.5% this year, most of the expenses go to cost 60%+ and other expenses 30%+. now the impairment allowance come to a concern level 1.5% from the revenue, this is quite high if compare to the profit margin 2.5%.. hopefully the management will put some effort in the furniture business, improve the dealership, or find other better dealers.

overall the business seems to be positive, wish coming year business can grow more and stable
23/05/2019 5:33 PM
thanaraj ELK- RESOUCES BHD share is a worthwhile investment in terms of its dividend Dy=4.61% and ROE at 8.0% which is better than your bank FD interest rate at 3 to 4 %. The Agm is on 8/8/2019.The annual report for year 2019 will not be mailed to you ( lazy lot these days) unlike other years and you have to contact the company Registrar which is Tricor. Or you can request Tricor (at Bungsar South) by phone to mail to yr home address. A.David
10/07/2019 4:47 PM
EricHoe any special news about this share, last week till now keep on rise, nowI all time high
16/07/2019 11:09 AM
Meng business growing up...
16/07/2019 4:41 PM
chwong28 https://www.thestar.com.my/business/business-news/2019/07/16/elkdesa-establishes-rm1bil-mtn-programme/
16/07/2019 11:00 PM
chwong28 Elkdesa, same industry as Aeon Credit and Rcecap, providing Hp loan for used car. Going to issue MTN medium term note of RM100m to increase their business, high capacity for leveraging up
16/07/2019 11:01 PM
chwong28 TP 1.98, could be higher with issuance of MTN, expected revenue and profit growth 20% per year
16/07/2019 11:02 PM
RainT wah
13/08/2019 2:16 PM
PenguinDad no more game. run out of steam. ha...
18/08/2019 8:12 AM
Kingfisher Know nothing about this very steady and resilent counter..Somemore want to comment !!!
Real Penguin lah..
19/08/2019 11:21 AM
PenguinDad Slowly distributing and than say good bye! Ha....
20/08/2019 8:05 AM
sleang another set of good results! steady..
22/08/2019 7:03 PM
tracylim Indeed.. I will just keep Elk as a mini blue chip.
22/08/2019 8:27 PM
Meng better than many blue chips in the market
23/08/2019 9:03 AM
PenguinDad distributing again! fooling everybody.
23/08/2019 9:31 AM
Meng the hire purchase receivables grow 7.67% this quarter. compare to previous year average quarterly grow rate at 5.32%. expect will have better performance next quarter.
23/08/2019 10:37 AM
PenguinDad wait for 3 more months and continuous distributing...will u hold. ha....
23/08/2019 11:08 AM
Meng i din sell since the day i bought.
23/08/2019 11:28 AM
PenguinDad we got a investor here.
23/08/2019 1:40 PM
RainT @meng

so will keep until u die?
10/09/2019 3:22 PM
Meng my way of investment is as long as company still good, and there is no other better investment, there is no reason to sell. unless need $ urgently la.
11/09/2019 9:31 AM
tracylim Wait for a year or two and we will all know.
18/09/2019 1:22 PM
tracylim Good to see Elk going slow but steady...
30/10/2019 1:11 PM
Meng just patiently waiting for quarter report
05/11/2019 9:46 AM
Jackiee Double digit growth guaranteed by director.. Let's see
18/11/2019 10:50 AM
sleang yet another set of steady results! good work
19/11/2019 6:45 PM
Meng results is good and steady grow. but dividend is lower than expected. did not meet 60% of the net profit. 3.5sen / 6.25sen (diluted eps) = 56%. next dividend pay out expect to be more
19/11/2019 8:10 PM
newuser999 Meng:EPS mana ada 6.5 cent? 3.24 only, but give 3.5 div
20/11/2019 12:10 PM
Meng first half year. June and Sept report
20/11/2019 1:55 PM
wongck Hope shareholders are rewarded faithfully
20/11/2019 8:35 PM
factslim1 ELK-Desa Resources Bhd net profit for the second quarter ended Sept 30, 2019 rose 11.6% to RM9.62 million from RM8.62 million a year earlier, due to the improved performance in its hire purchase portfolio for the quarter under review.

In a filing to the stock exchange Nov 19, the firm said revenue for the quarter rose to RM36.62 million from RM30.99 million previously.

Earnings per share was 3.24 sen versus 2.94 sen earlier.

ELK-Desa declared an interim dividend of 3.50 sen per share for the financial year ending March 31, 2020 to be paid on Jan 15, 2020.
21/11/2019 3:02 PM
Meng The hire purchase receivables increase 77m in first half financial year 2020 (Jun 2019 & Sept 2019), compare to last financial year, whole year hire purchase receivables increase 89m, this year the grow rate is consider super fast. with this rate, i guess this financial year net profit will be very close to 40m, and dividend should be around 7.5 ~ 8sen whole year.
23/11/2019 2:47 PM
Sarawakian60 Why PH allow monopoly? Their manifestos again lying?
25/11/2019 9:42 AM
tracylim ELK-Desa 3rd Quarter Profit Before Tax Jumps by 32%

KUALA LUMPUR, 18 February 2020 – ELK-Desa Resources Berhad (Stock Code: 5228/Sector:
Finance), a non-bank lender focused in the used-car segment, today announced its financial results for the third quarter ended 31 December 2019.

During the quarter under review, the Group registered a 32% increase in profit before tax to RM13.25 million compared to RM10.08 million in the corresponding quarter a year ago. The Group’s improved performance came on the back of higher revenue of RM38.65 million compared to RM31.11 million registered in the same period a year ago.

The increase in both revenue and profit before tax were primarily due to higher contribution from the Group’s Hire Purchase Division during the quarter under review.

As at 31 December 2019, hire purchase receivables was recorded at RM601.70 million, translating into an increase of 32% compared to RM456.06 million last year. Correlating to the increase in hire purchase receivables, the Group’s borrowings and debt securities was 185%
higher at RM287.63 million compared to RM100.90 million a year ago.

The increase in borrowings and debt securities was mainly due to higher drawdown of block discounting facility and the Medium-Term Notes that were issued during the current financial period to finance the increase of hire purchase receivables. In spite of the rise in total borrowings, ELK-Desa’s gearing ratio remains at a low and manageable level of 0.68 times.

On a cumulative perspective, the Group registered a profit before tax of RM38.36million for the first nine months of its financial year ending 31 March 2020. This marked a notable increase of 18% from the profit before tax of RM32.39 million registered in the same period last year. Revenue for the nine-month period was also 21% higher at RM110.47 million compared to RM90.93 million a year ago.

Teoh Seng Hee, the Executive Director and Chief Financial Officer of ELK-Desa Resources Berhad, said, “The Group is progressing on a healthy growth trajectory that is supported by relatively stable domestic macro-economic factors such as low unemployment rate and
manageable inflation. Based on our performance to date, we believe that we will be able to close out our financial year ending 31 March 2020 on a stronger note compared to a year ago.”

“Moving forward, we are also cognisant of the external headwinds pressuring the domestic economy. These include the potential impact from the Nova Corona virus outbreak and the uncertainties that stem from the on-going trade war between China and the US,” he added.

“While we are paying close attention to these developments, we believe that the Malaysian
economy remains resilient and would be able to withstand the difficulties in the immediate to
medium term.”

“In view of this, the Group intends to maintain its strategic direction to grow its hire purchase portfolio dynamically while paying close attention to safeguarding the quality of its assets. We remain confident that there is still a lot of room to grow in the underserved second hand car hire purchase financing segment and we will continue to invest in the talent and processes to manage
credit risk and enhance credit recovery,” Teoh concluded.
18/02/2020 7:53 PM
Meng overall another good quarter report. hire purchase receivables growing very fast, more than 8% compare to last quarter on September 2019. there only slightly higher impairment and higher tax causing net profit lower than last quarter. overall business still maintain to grow very stable. management really do a nice job.

btw, i also noticed some new term loan in the balance sheet. maybe they still continue to explore for better gearing methods. seems to be a good sign.

management also hints that next quarter business is still grow stable.
19/02/2020 9:24 AM
Meng maintain target 40m net profit for financial year 2020 ended next month. looking forward to get 4 ~ 4.5sen dividend next quarter
19/02/2020 9:47 AM
tracylim Collected more Elk during panic selling sale yesterday. Glad to know that I was doing this alongside with the big boss.
10/03/2020 6:23 PM
Meng although i don't think there will be any impact to the company next quarter report from the current market conditions, but i personally don't think now is the time to collect more.. it is cheap, but overall market not good
11/03/2020 2:53 PM
jason007 there will be no collection for 6 month ?
30/03/2020 12:42 PM
god2077 does it apply to hire purhase also?
01/04/2020 10:30 AM
kisahbenarbro ELKDESA has a current ratio of 2.449 times in 2019 indicating that the company does not face any liquidity issue as it BOLEH paying back its liabilities (RM71.9 million) if sesuatu berlaku. ELKDESA is able to do so by using current assets such as inventories, other assets, trade receivables, hire purchase receivables, other receivables, deposits, prepayments, current tax assets, short term funds, cash and bank balances amounting to RM176.1 million. Kemungkinan juga also indicate that the company is not efficiently using its current assets or its short-term financing facilities.
17/04/2020 10:18 AM
tracylim Elkdesa is not governed by Bank Negara so at least not affected by moratorium. Their previous clients still need to pay loan, in short they don't have to provide deferment plan like bank hire purchase. Btw, I am still collecting bit by bit.
27/04/2020 1:11 PM
tracylim Estimate price will come back slowly after lock down.
27/04/2020 1:14 PM
Meng the second hand car sales on April were too little. expected for the quarter April to June of 2020 will be a big impact to the company. meanwhile we all know the customer base of the company is those who unable to optain loan from banks, thus the chance of becoming bad debt will be higher especially within the MCO period. for the coming quarter results on March may not see much impact, but i rather wait 3 more months to see the report of June. we won't know how much loss will suffer from the lower new loan, and higher impairment. lucky that gearing is not high, that's the only thing feeling safe.
28/05/2020 1:45 AM


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