Faber - the target price will be at three level before the stop hit, RM2.68.

"FABER GROUP PLANS TO MOVE INTO HEALTHCARE"

REVENUE FROM FABER's OVERSEAS FACILITIES MANAGEMENT INCREASE BY SIX FOLD DESPITE LOWER PROFIT FOR FYE DEC 2009

CLASSIFICATION: ACCOUNTING/AUDIT NOTIFICATION/ANALYSIS & BUSINESS PROJECTIONS
TYPE: Short Analysis / Reviews
22 March 2010

REVENUE FROM FABER's OVERSEAS FACILITIES MANAGEMENT INCREASE BY SIX FOLD DESPITE LOWER PROFIT FOR FYE DEC 2009 FABER GROUP's successful expansion of facilities management overseas resulted in a six-fold increase in Revenue from RM25.2m in 2008 to RM142.3m in 2009. This will likely expand further in 2010, since the bulk of the growth in 2009 came only in the last quarter. INSIDERASIA in a research article said that it expects overseas operations to contribute RM220m in revenue annually in 2010-2011.

The strong overseas contributions resulted in strong earnings for FABER in 2009. Despite lower property contributions, underlying Net Profit for 2009, excluding Exceptional Items, rose 32% to RM82.7m, Underlying PBT increased 26.6% to RM141.2m, while Revenue rose 21.8% to RM805.3m.

FYE DEC 2009 PROFIT LOWER BUT 4QE DEC 2009 STRONGER RESULTS
Overall, profit for 2009 was lower than 2008, as there was a One-Off Gain of RM93.2m from the sale of the Sheraton Hanoi Hotel in 2008.

4QE Dec 2009 was strong. Revenue doubled to RM303.9m, PBT surged 128% to RM65.8m while Net Profit surged 138% to RM42.6m. This was a significant improvement from 3QE Sep 2009 Net Profit of RM19m, RM26.4m for 2QE Jun 2009 and RM13.8m for 1QE Mar 2009.

Overseas facilities management was the main trigger for the improved results. Profits at the integrated facilities management arm surged 89% to RM127.9m from RM67.7m. PBT Margins here increased from 13.3% to 18.7%.

The Overseas Facilities Management Division was helped notably by contributions from new ventures overseas, particularly in the United Arab Emirates (UAE), which commenced in 1QE Mar 2009 and contributed mostly in 4QE Dec 2009. There were also higher variance orders, bed occupancy rate and new facilities at local hospitals under the FABER MEDI-SERVE concession arrangement.

PROPERTY DIVISION
The Property Division witnessed a smaller-than-expected decline, as earnings recognition from progress billings at 'Laman Rimbunan' picked up in subsequent quarters, after a small loss in 1QE Mar 2009. Property profits fell 34% to RM28.1m on Revenue of RM122.5m.

NET CASH AT END DEC 2009 HEALTHY
FABER's Balance Sheet remains very solid, with Net Cash of RM125.1m as at Dec 2009

[addedon]March 23, 2010, 9:29 am[/addedon]they are the biggest company on handling all the services in all the government hospitals which are more than 70 government hospitals and 400 healthcare institutions.

Cleansing services
clinical waste management

both are the most profitable licences.

U could see who are the most shareholders in this company. u will laugh as u go.

cheers
shareeye