KGB - Flying high in 2017

KGB - Flying high in 2017 (Update)

excelyou
Publish date: Wed, 03 May 2017, 10:28 PM
  2014 2015 2016
Revenue 189,102 206,356 343,344
Gross margin 17,965 20,223 39,141
Expenses 12,746 22,278 29,070
PBT 5,219 (2,055) 10,071
PAT 5,149 (2,521) 8,827
EPS - cents 2.4 -1.2 4.00
GP % 9.5% 9.8% 11.4%
Non-recurring item:      
- Written off & Impairment loss on trade receivable - 629 9,876
- Amount owing by contract customers written off - 3,739 832
- Impairment loss on other receivable - 4,015 224

 

FROM ANNUAL REPORT 2016

PROFIT MARGINS

During the year, the Group embarked on a productivity improvement programme to closely monitor our costs and boost our efficiencies.

As a result, gross profit margins improved year-on-year from 9.8% to 11.4%. We have an internal aim to continually maintain gross profit margins at double-digit levels.

The Group’s performance in FY2016 was impacted by written off and impairment losses amounting to RM10.9 million. Despite this, the Group recorded a profit before tax (PBT) of RM10.1 million, a turnaround from last year’s loss making position. FY2016 PBT and net profit margins stood at 2.9% and 2.6% respectively.

In mitigating our collection risks, we have tightened our internal controls at the respective subsidiaries to closely assess the risks involved in each project that we undertake. We have also started to closely monitor the payment terms and schedules of our projects across all of the regional offices.

PROJECTED PROFIT FOR FYE2017

  2016   2017
Revenue 343,344 20% growth #1 412,013
Gross Margin 39,141 KGB KPI target of 12% #2 49,441
Expenses 29,070 (FY2016 Expenses - Non recurring) X 20% growth (21,766)
Debt recover   # 3 1,342
PBT 10,071   29,017
PAT 8,827 After effective tax rate of 12.3% (same as 2016) 25,738
EPS  4.00   11.6
GP % 11.4   12%

# 1: Director expected double digit growth. In 2016, 66% growth, let assume minimum 20% only.

# 2: http://www.kelington-group.com/images/reports/presentations/2017/Kelington_Analyst%20Briefing-2017-03-29-to-print.pdf

# 3: On 12 January 2017, Biocon ( Impairment loss on trade receivable made in 2016 )made a partial payment of RM1,342,022.00 (exclusive of interest and GST) to KTSB.

Non recurring is not expected to be repeat due to above tightened internal controls mentioned above.

CONCLUSION:

PROJECTED EPS OF RM0.116, WITH 12X PE (AVERAGE INDUSTRY OF 12X) , KGB SHALL BE AT RM1.39.

 

 

 

 

 

 

 

 

 

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1 person likes this. Showing 2 of 2 comments

Zeal Liew

Good article and prospect, thank you!

2017-05-09 14:45

oniongor

the revenue for 2017 only 317m, management lie

2018-03-14 22:38

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