iVSA Stock Review

Holistic View of OCK with Fundamental Analysis & iVolume Spread Analysis (iVSAChart) - 4-2-16

Joe Cool
Publish date: Fri, 05 Feb 2016, 01:21 AM
Joe Cool
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Is OCK Group Berhad a Company Worth Lookout For?  

 

OCK Group is an expanding group of companies with a number of associate and subsidiary companies. Since the establishment, OCK Group has ventured into four major business divisions that expound their business footprint in the industry: Telecommunication Network Services, Trading of Telco and Network Products, Green Energy and Power Solutions, as well as M&E Engineering Services. OCK Group is principally involved in the provision of telecommunication services equipped with the ability to provide full turnkey services. 
 
The company’s service offering comprehensively covers services from all six segments of the telecommunication network services market: network planning, design and optimization, network deployment, network operations and maintenance, energy management, infrastructure management, and other professional services. 
 
As a Network Facilities Provider (NFP) Licensee, the company is able to build, own and rent telecommunication towers and rooftop structures to the eight telecommunication operators in Malaysia. OCK Group also trades in telecommunication hardware and installation of materials such as antennas, feeder cables, connectors etc. This business division complements the core business of the Group as it acts not only as a materials supplier to the Group but to other telecommunication network service providers and operators as well. 
 
As the businesses expand, OCK Group has ventured into Green Energy and Power Solutions, an imminent and a rapidly increasing industry in Malaysia. Concurrently, the company is active in the construction of solar farms as well as supplying power generation equipment for commercial, retail and factory buildings, and inclusive of installation, commissioning and testing services. 
 
M&E is one of the core businesses of OCK Group that provides mechanical and electrical services to housing development projects, commercial high-rise buildings, factories, infrastructures, airports, medical centres and hotels. The company is capable of providing project management, supply and installation of most mechanical and electrical services.
 
In 2013, OCK Group has achieved several significant milestones. The Lembaga Tabung Angkatan Tentera (LTAT) has vested their interest in the Group by becoming one of their shareholders. The company is also growing substantially with their own establishments abroad. In addition to Fortress Singapore, OCK Phnom Penh in Cambodia and OCK Yangon in Myanmar, the company is expanding their business footprint further across the region with Fuzhou 1-Net in China, a company that provides network optimization services. Having an annual revenue of less than 200 million, OCK is considered a small to medium enterprise with 70% of their revenue coming from the telecommunication and services business sector. 
 
Below is the company’s latest financial year figures.
 
 
Being listed for only more than 3 years, OCK group’s revenue have achieved steady increase for the past 3 years. Its annual year to year increase is about 16.2% which results in today’s RM 187.5 million annual revenue and it is mainly due to the on going LTE network developments in the local market. Net Earnings for OCK group have increased in general for the past 3 years despite the slight dip in net earnings during Financial Year (FY) 2013 due to great incase in minority interest. The groups net earning have achieved growth of 26.8% in FY2014 as compared to FY2013 and 24.3% if compared to FY2012.
 
The group’s net profit margin have been stable throughout the 3 years of listing, hovering around 8.5% to 9.5%. The net profit margin of 8.7% in FY2015 is considered average and could do better as they are in a non-retail industry. Despite being small in size, OCK group have a very good Total Debt to Equity Ratio of 0.356, which is due to low long term liabilities and current liabilities. The company also has an excellent Current Ratio of 2.635, which shows that they have relatively high value of current asset as compared to their current liabilities. In addition, 35% of their current asset is in the form of cash which results in an acceptable Cash Ratio of 0.854. Unfortunately, OCK group have not been paying dividend since FY 2012. 
 
In conclusion, OCK group’s increasing revenue trend shows that the company is constantly expanding not only in their core business of telecommunication services, as well as seeking new stream of income in their other 3 arms of business as mentioned above. In view of the company’s good Debt to Equity Ratio and the on-going steady stream of income from Malaysia’s LTE network initiative, OCK group will favour investors who are looking for small cap companies with steady growth. 
 
It would be better if the company resume its dividend issuing efforts to attract the dividend seeking investors. (Today’s share price: RM 0.685)
 
 
iVolume Spread Analysis (iVSA) & comments based on iVSAChart software toolkit – OCK
 
 
OCK broke RM0.75 support on the left side of the chart and been trading sideways with bias to the downside. Should OCK break the next support at RM0.66, it will trade to the downside.
 
If the share can hold above this RM0.66 support line, we will see a possible test to resistance line @ RM0.72. 
 
Any Enquiry?
 
- WhatsApp: +6011 2125 8389/ +6018 286 9809
 
- Email: sales@ivsachart.com
 
- Follow us on Facebook: https://www.facebook.com/priceandvolumeinklse/ and website www.ivsachart.com
 
OCK (0172)
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Discussions
1 person likes this. Showing 4 of 4 comments

3iii

Telecommunication Network Services; Green Energy and Power Solution; Trading and M&E Engineering Services. Its main business is Telecommunication Network Services. This sector requires a lot of capital expenditure to build up the infrastructure. Let us understand more of this business segment.

2016-02-05 11:04

3iii

It is obvious that this company requires a lot of capital to grow its present Telecommunication Network Services. It is expanding in this region fast. Its capital expenditure will be high and the present cash generated by its present operations is not enough to fund this. Accordingly, you can expect it to raise capital through equities (leading to dilution of your shareholdings) and through borrowings. Its Free Cash Flow should be negative for many more quarters and it is not surprising and also understandable that it has stopped paying dividends.

2016-02-05 11:21

3iii

Effective Change Date Stock Name Buyer / Seller Name [Classificationa] Security Bought / (Sold) Price Closing Price(MYR)d
(Notice Date) Types b ['000]
Direct Deemed Total
27 Jan 2016 - 27 Jan 2016 OCK Low Hock Keong [DIR/CEO] S/U -1,250 RM0.630 0.665 
(29 Jan 2016)
08 Dec 2015 - 08 Dec 2015 OCK Chang Tan Chin [DIR/CEO] S/U -100 0.725 
(15 Dec 2015)
11 Nov 2015 - 11 Nov 2015 OCK Chong Wai Yew [DIR/CEO] S/U -280 0.810 
(12 Nov 2015)
04 Nov 2015 - 04 Nov 2015 OCK Chang Tan Chin [DIR/CEO] S/U -40 0.805 
(04 Nov 2015)
08 Oct 2015 - 08 Oct 2015 OCK Chang Tan Chin [DIR/CEO] S/U -40 0.835 
(02 Nov 2015)
21 Oct 2015 - 21 Oct 2015 OCK Low Hock Keong [DIR/CEO] S/U -340 0.790 
(23 Oct 2015)
08 Oct 2015 - 08 Oct 2015 OCK Chang Tan Chin [DIR/CEO] S/U -40 0.835 
(09 Oct 2015)
04 Sep 2015 - 04 Sep 2015 OCK Abdul Halim Bin Abdul Hamid [SSH] S/U 0.735 
(04 Sep 2015)
27 Aug 2015 - 27 Aug 2015 OCK Lembaga Tabung Angkatan Tentera [SSH] S/U 50 0.720 
(01 Sep 2015)
05 Aug 2015 - 05 Aug 2015 OCK Chang Tan Chin [DIR/CEO] S/U -100 0.915 
(05 Aug 2015)
25 Jun 2015 - 25 Jun 2015 OCK Ooi Chin Khoon [DIR/CEO] S/U -155 0.840 
(06 Jul 2015)
25 Jun 2015 - 25 Jun 2015 OCK Ooi Chin Khoon [SSH] S/U -155 0.840 
(06 Jul 2015)
13 Apr 2015 - 14 Apr 2015 OCK Lembaga Tabung Angkatan Tentera [SSH] S/U -300 0.940 
(17 Apr 2015)
09 Apr 2015 - 09 Apr 2015 OCK Lembaga Tabung Angkatan Tentera [SSH] S/U -368 0.930 
(15 Apr 2015)
08 Apr 2015 - 08 Apr 2015 OCK Chang Tan Chin [DIR/CEO] S/U -165 0.935 
(10 Apr 2015)
10 Mar 2015 - 10 Mar 2015 OCK Chang Tan Chin [DIR/CEO] S/U -85 0.890 
(17 Mar 2015)
10 Mar 2015 - 10 Mar 2015 OCK Chang Tan Chin [DIR/CEO] S/U -100 0.890 
(16 Mar 2015)
27 Feb 2015 - 02 Mar 2015 OCK Lembaga Tabung Angkatan Tentera [SSH] S/U -3,300 0.930 
(09 Mar 2015)
13 Feb 2015 - 13 Feb 2015 OCK Lembaga Tabung Angkatan Tentera [SSH] S/U 50 0.870 
(23 Feb 2015)
09 Feb 2015 - 11 Feb 2015 OCK Lembaga Tabung Angkatan Tentera [SSH] S/U -200 0.905 
(13 Feb 2015)
19 Jan 2015 - 19 Jan 2015 OCK Lembaga Tabung Angkatan Tentera [SSH] S/U -112 0.870 
(21 Jan 2015)
08 Jan 2014 - 08 Jan 2014 OCK Lembaga Tabung Angkatan Tentera [SSH] S/U -594 0.770 
(14 Jan 2015)
30 Dec 2014 - 05 Jan 2015 OCK Lembaga Tabung Angkatan Tentera [SSH] S/U -185 0.790 
(09 Jan 2015)


Insiders selling since Dec 2014

2016-02-05 16:22

sosfinance

New business that will contribute significantly in 2016 and 2017 from build and lease back (12 years) with Telenor of Myanmar up to RM1.0 billion contract. Payback period is 5-7 years. This project will easily double the current profit in two to three years time. A high growth stock, with great biz model on build and lease back towerco.

2016-02-09 12:08

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