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Annual Report Hints :
  Narialse Quarter results just released, looks ok, not great. Giving out free warrants which investors always love. No entitlement date yet, though. 28/08/2020 5:41 PM n00b123 QR shows it is doing better than last year. But the current price is lower than last year. Means undervalued? 29/08/2020 10:26 AM  kong73 E.A. Technique’s (EAT) 2QFY20 top line grew by 41.4% YoY, mainly attributed to higher recognition from the Group’s Temporary Storage Tanker (TST) contract which commenced operation in February this year. Nonetheless, core net profit slipped 16.1% YoY to RM8.8m due to enforcement of Movement Control Order (MCO), resulting in a significant disruption to its operations. For 1HFY20, the Group reported core net profit of RM22.7m ( 34.6% YTD), in tandem with higher revenue of RM181.5m ( 36.7% YTD) on the back of stronger 1QFY20 numbers. While core earnings were at 66.8% of our full year projections, we deem the numbers as in line however. We err on the side of caution over its earnings in the remaining quarters, considering the operating environment after the Covid-19 and the level of oil prices currently with earnings likely be affected as a result of fewer spot charters and adjustment on charter prices. We maintain our Outperform call on EAT nonetheless in view of its stable earnings outlook despite recent hiccups. Our TP of RM0.47 based on 8x FY21 EPS. Lower QoQ earnings due to MCO. EAT reported lower core net profit of RM8.8m (-37.1% QoQ) in 2QFY20 despite of higher revenue by 7% QoQ to RM93.8m. This was mainly due to enforcement of the MCO starting mid March, resulting in a significant disruption to its operations particularly on the movement of crew as well as additional costs incurred due to Covid-19. With that, the Group’s profit margins compressed by 11ppt and 6.6ppt at gross and net profit levels respectively. Higher top line in the quarter was not a surprise given the first full contribution from the Group’s TST contract. Earnings forecast unchanged. Despite the commendable 1HFY20 performance, we err on the side of caution on EAT’s 2HFY20 earnings given the impact of low crude oil prices due to the Covid-19 pandemic. The Group’s earnings are likely to be affected as a result of fewer spot charters, lower charter rates and possible termination of contracts. Recall, global oil majors including Petronas have announced capex cuts ranging from 20% - 30% this year. As such, we foresee there are charter rate adjustment risks on EAT’s FSO Muar and Tembikai. We also foresee there is risk for TST contract to be ended earlier than the original due date (January 2021) given the role of the TST itself as a temporary storage for Early Well Test (EWT) for the Sepat C exploration field. Having said that, EAT’s earnings outlook is expected to remain stable with growth seen in FY21 onwards after commencement of the three new tanker contracts. Outstanding orderbook remains healthy at RM910.9m, translating to 3.3x FY19 revenue. Source: PublicInvest Research - 1 Sept 2020 12/11/2020 5:39 PM cutie An arbitral tribune has ordered EA Technique (M) Bhd (EATech) to pay Malaysia Marine and Heavy Engineering Holdings Bhd (MHB) a sum of US$29.52 million (RM121.93 million), after hearing a dispute between the two companies over a contract. 13/11/2020 1:11 AM vcinvestor public bank is not fully taking into account the impact of the arbitration award so their RM0.41 price target is laughable. the only way EA can meet the claim sum is via issuance of new shares which will dilute the existing shareholders like hell. 13/11/2020 10:59 AM kong73 kalah kena bayar gantirugi kepada mmhe...Q3 dia orang dah impair..but cash flow dia orang from current operation nampak ok 01/12/2020 9:59 AM n00b123 Q3 huge loss and yet lost the court case with mmhe.. Gone case for this company 03/12/2020 9:09 AM TokioDeals Q3 huge losses because of provision to pay mmhe. Q4 will be back in black, just look at segmental performance. Will hit 60 soon. 04/12/2020 2:52 PM kong73 No laaa Q4 hancur TSR dah habis.. tunggu tahun depan baru ada new contract kick in 04/12/2020 9:05 PM TokioDeals Q4 their new floating storage will continue to do well plus profit from petronas contracts. 2 new MR tankers in Q4. Improving cashflow after debt reduction exercise last year. Should at least trade above NTA and if you annualized last yr profit with 10x PE it should trade at 68 sen. But this year excluding provision to mmhe, profit could be 2x more than last year. So it can trade higher than 68 sen. 05/12/2020 4:02 PM Fundamentalist91 Relax, look at the analyst reports, all give TP around 0.40, that's at least 35% upside. The orderbook remains healthy at 800 Million+ Institutional investors are buying in, they know better, they are even scared of losing money, so they wouldn't be investing if this was a junk stock. Rest assured and wait 10/12/2020 12:36 PM  |
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