Business Profile :
Business Division :
Divided into 2 segments :
Results of each business’s division :
Result |
Q1’2018 |
Q2’2018 |
Q3’2018 |
Q4’2018 |
Revenue (‘000) |
44,070 |
45,332 |
42,498 |
47,081 |
Profit (‘000) |
27,703 |
13,897 |
23,059 |
16,141 |
Result |
Q1’2018 |
Q2’2018 |
Q3’2018 |
Q4’2018 |
Revenue (‘000) |
19,402 |
23,424 |
24,756 |
30,597 |
Profit (‘000) |
11,712 |
7,457 |
6,286 |
18,383 |
Result |
Q1’2018 |
Q2’2018 |
Q3’2018 |
Q4’2018 |
Revenue (‘000) |
349 |
372 |
300 |
140,819** |
Profit (‘000) |
91 |
87,576* |
30 |
23,063*** |
*The profit was due to reversal of EPCIC project costs as there were some deletion scope of works and settlement of claims with customer.
**The increase was due to increase in EPCIC project.
***. This was resulted from a reversal of EPCIC project cost due to deletion of certain scope of works and some additional invoices in the current quarter.
Comparison of Results :
Result (‘000) |
Q1’2018 |
Q2’2018 |
Q3’2018 |
Q4’2018 |
Revenue |
63,821 |
69,128 |
67,554 |
218,497 |
Cost |
46,436 |
36,224 |
52,747 |
220,212 |
Profit Before Tax |
17,443 |
83,202 |
7,548 |
(17,832) |
Profit After Tax |
17,207 |
83,155 |
7,301 |
(33,431) |
Company Overview for the Results :
Q4’2018 :
Revenue
FY18 12 months ended ( + 14 % )
TQ4’2017 ( RM 366.96 million ) vs TQ4’2018 ( RM 419.00 million )
The increase was due to contribution from EPCIC business. Notwithstanding, there was an increased in revenue from Marine transport services due to new charter hire fee derived from FSU Nautica Muar and Nautica Gambir.
YoY ( + 211% )
Q4’2017 ( RM 70.34 million ) vs Q4’2018 ( RM 218.50 million )
The increase was due to increase in revenue from Marine transport services derived from new charter hire fee from FSU Nautica Muar and Nautica Gambir and the increase in EPCIC project.
Profit
FY18 12 months ended ( + 168.51 % )
TQ4’2017 ( - RM 131.90 million ) vs TQ4’2018 ( RM 90.36 million )
The profit was mainly due to reversal of EPCIC project cost as there were some deletion scope of works and settlement of claims from customer.
The Group had also recorded net loss on foreign exchange of RM6.38 million for the twelve months period ended 31 December 2018 as compared to net gain of RM29.51 million in the previous corresponding period.
YoY ( -105.78 % )
Q4’2017 ( RM 1.03 million ) vs Q4;2018 ( - RM 17.83 million )
This was resulted from a reversal of EPCIC project cost due to deletion of certain scope of works and some additional invoices in the current quarter. The Group had also recorded net loss on foreign exchange of RM1.99 million for the quarter ended 31 December 2018 as compared to net gain of RM12.21 million for the previous corresponding quarter.
Business Opportunity and Risk
Opportunity :
1. Forex gain/loss base on the strength of MYR/USD. Strong MYR benefits.
2. High Order Book which can last for at least 2 financial year. Total worth of RM572.49 million with additional RM216.65 million for extension period.
3. About 71% of 42 vessels are on long-term charters, with tenures stretching until the year 2027. This has resulted in high fleet utilisation of above 80%, ensuring the Company of a recurring revenue stream.
4. Stable position of Crude/Brent Oil Price at $60 and above, which led to a corresponding increase in demand for the services of offshore vessels.
5. Strong Cash Flow of RM 90.3 million in FY 18.
6. The Group’s fleet of vessels has been expanded with the delivery of two super Fast Crew Boats (“FCB”), M.V. Nautica Gambir and M.V. Nautica Langsat on 9 July 2018.
Risk :
1. High Gearing Ratio of 1.71 .
2. Unstable Oil Price
3. High reliance on the O&G sector and the PETRONAS Group in particular.
Company Prospects / Outlooks :
Q4’2018 :
The Group has recently also been awarded contracts for the provision of three (3) Harbour Tugs and one (1) Multipurpose Mooring Boats for Sungai Udang Port Sdn Bhd Regasification Terminal. The Contract duration will be for a primary period six (6) months with six (6) months extension option for one of the tugboats and for a primary period two (2) years with one (1) extension options for the rest of the boats upon expiry thereof. The Contract is expected to contribute positively to the earnings and net tangible assets of the Group for the financial year ended 31 December 2019 and beyond. The Group has recently also been awarded contracts for the provision of Harbour Tugs for Kerteh Port Sdn Bhd for a primary period of five (5) years. The Contract is expected to contribute positively to the earnings and net tangible assets of the Group for the financial year ended 31 December 2019 and beyond. As at 31 December 2018, the Group’s orderbook was approximately RM572.49 million with additional RM216.65 million for extension period. The Group remain optimistic on its operating performance from the respective business segment Marine Transport and FSO in view of the higher utilisation of FSU Nautica Muar, Nautica Renggam, Nautica Pagoh, Nautica Gambir and Nautica Langsat in 2019.
Estimation for Q1’2019
Expected revenue for Q1’2019 are around RM 70-75 million , and RM 15 - 20 million of profit. ( if there is no any additional invoices or reversal of cost from EPCIC project )
EPS for Q1’2019 = 3.5 - 4.0 sen , take 3.75 sen as an average .
With no growth for the next 3 quarters , whole year EPS will be 15 sen. Forward PE will be around PE 3 ( Share price of RM 0.465 ) .
With PE x5 , share price should be around RM 0.75 . With current share price ( RM 0.465 ) , a RM 0.285 or 61 % of potential gain.
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