Sigh...

Results
Higher profit - Bumi Armada posted a net profit of RM78.2m in 2Q19 compared to a net loss of RM585.5m in 2Q18, due to impairments totalling RM478.9m, and normalised loss of RM106.6m. The higher earnings came following higher contribution from Armada Kraken FPSO Armada Olombendo FPSO.
Lower revenue – 2Q19 revenue declined 18% YoY to RM535.6m following amid flat performance by Floating Production & Operation (FPO) at RM443.6m and lower revenue from Offshore Marine Services (OMS) (-56% YoY to RM92m due to completion of the LukOil project in December 2018).
Better QoQ – Compared with the previous quarter, 2Q19 normalised net profit rose 16% QoQ on the back of a 9% QoQ revenue growth as FPO revenue climbed 4% QoQ while OMS jumped 39% QoQ as OSV fleet utilisation rate improved to 51% from 39% in 1Q19 due to higher demand in Malaysia.
Improved margins – Operating margin improved to 38% from 34% in 1Q19 while net margin increased to 15% from 13% in the previous quarter. The improvement in 2Q19 came after FPO and OMS segmental margins rose to 63% and 24% from 60% and 14% respectively in 1Q19.
Steady orderbook – Orderbook remains steady at RM18.9b (FPO: RM17.9bn, OMS: RM1bn) another RM9.9bn worth of potential extension. This will sustain the group’s revenue for the next few years.
Earnings Outlook/Revision
Exceeded expectation – 1H19 normalised net profit of RM145.9m grew 36% YoY and achieved 72% of our full year forecast of RM201.7m while six months revenue dropped 18% YoY to RM 1.03b and achieved 38% of our FY19 forecast.
Forecasts lifted – We are raising our EPS forecast for FY19 and FY20 by 55% and 17% respectively following improved efficiency and profit margins but keeping our revenue estimates.
Valuation & Recommendation
Maintain BUY call with a higher target price of RM0.50 (from RM0.47) based on +1 SD to its 3-year average P/B. Risks remain its high debt and gearing level despite the recent refinancing.
Potential upside is the possible compensation of US$280m (>RM1b) from the Armada Claire court case and judgement is expected in 4Q19.

armada already impaired last year. Now is Yinson’s turn to impair.

If Yinson drop, armada should up.

As long on paper looks good, can get more perpetual bond. Can pay more dividend summore.
Isn't that why it's trading at PE32? Awesome!

Use bond money pay first nvm. Ehehhehe

They better keep paying dividend. Else...sigh....

After the price tank...then can start collect. Just this time, these "new" customer. Profit margin quite thin. Last time can get good 20-30% margin. Now looks like the margin has drop. What u guys think?

Just a quick glance on the statement. Haven't go in details yet.

cheer76, don't waste too much time on inventories in balance sheet. It's old expired inventories thats outdate and cannot sell; that's stuck in warehouse. U see the 12-15mil inventories has been there since forever.

A more accurate inventories turnover should be increased in trade payables + increase in inventories in cash flow statement. A quick look shows increased. But from last increased; the profit margins seems decreased. I wanna see which part goes up.

When the market isn't willing to trade at lower price and buyer not buying at a higher price; buyer and seller gets into a stand off trading sideways.

Now let say, if short seller manages to short sell high price in the morning by creating false buying panic and later in the afternoon, if the support is weak. Or support volume is less then the volume IDSS short sell in the morning; they can easily short sell at lower price creating further panic selling so that they can buy back to cover their position they short sell in the morning..

That's where the concept "support" and "resistance" in form of pricing can easily trigger a panic buy and panic sell. It's a tools to manipulate the market. If there are enough stupid people; it works 10/10. What we can do as supporter is...Set a big enough buy queue at lower price; that will mitigate the consequence market manipulator.

The problem here is...IF suddenly EPF comes in at 4pm and sweep everything. Then IDSS will be washed ashore naked. Supporter will cheer a while lo. =D

Let me ask people here, how many people actually look into details of my many shares transacted in higher price or lower price?

Alright. I'm abit too serious calling u so hai. =D

Don't angry. Don't angry. Hahahaha

Whats the point talking fact if fact isn't what you are interested in. Now, u joining JohnChew with 200 shares to talk 3 talk 4. Hahahahaa

Yinson grow that time, never come here say Yinson up, Armada too. Now yinson down, armada should down. Woah, so hai betul.

Evidently, you are just the same type of sohai like John Chew and CKCA.

Eh eh Eh....when Armada price tank. Yinson got tank? Answer NOOOOOOO.

Evidently, Armada is armada. Yinson is yinson. Don't become sohai. =D

Geco, shit don't hit both fan the same time. When shit hits armada's fan. Nothing happened to Yinson also. Yinson's bubble continued to grow.

Yinson don't usually report impairment. NOWWWWWW, shit starts to hit Yinson's fan. Impairment starts to appear. If the same logics applies, it's armada's turn to grow. =P

or consolidating before heading up. So....

Yep...Break 40sen...should rally until 50 sen resistance before QR. In between waiting for good news on claire and new contract.

this rise is just simply bcos market realizing it's de-risk on it's default of it's current liability.
Imo, the actual fair value when everything confirmed will be 60-70sen.

So, u can buy when everything is confirmed and guess how good it can be later at 70 sen and hoping its so profitable that it will rise to RM1.

let them rise fast...swing trade....keep half ur portfolio for long term. The other half for cross trade.

U can Q 0.01. Just nvr match only

Good question impair non material 1.6billion on 238mil profit a quarter why?

A good answer is so that 90sen drop to 15sen.

And next question! why would anyone wants to do that? So that if it’s reversed, without needing move 1.6billion, and with 240million x 4 quarter for a year, that’s translate to Rm 2.5billion for FY2020.

Imagine what happen to YoY and QoQ improvement in FY2020. Its gonna be at triple digit growth.

And for people like AK with access to fancy financial instrument given his position; he has already made a chunk from 90-15sen by shorting. Now, he probably collect back all his shares and waiting to release all the good news.

A tip on for ur improvement; don’t just read what’s written. Do abit more; WHY IS IT WRITTEN THAT PARTICULAR WAY.

Having that said, CIMB one is most A-hole one. When sell at 22sen, they TP15 sen. When collect enough, TP40. All in short 6 months. If idiots that just read what’s written and don’t understand why it’s written...die lo!

Why u didn’t write that also?

It means they didn’t pay shit yet. Probably don’t have to.

@johnchew

Wats missing inbur statement is “Impairment has no material implication.

Should be depreciated book value minus sale price of perdana would be better representation. Using it's cost value is inaccurate. But, that depends on how management wants to report it in QR.

This CEO, probably use depreciated book value.

that's a dumb estimate. You forgot how heavy Armada claim on their depreciation? At the rate of they depreciate, most asset would be zero by 8th to 9th year. AFAIK, Armada Perdana is already FOC by now.

Yeah US shale oil. Now, their reserve reduce from 475mil to 412mil in a week. I wonder how long the world run into energy crisis and everyone starts begging armada to pump more oil. Lol!

Who gives a shit who started first...LOLOLOL

This prove Johnchew not only can't read nor count. But also he is just 5 years old up there.
I wonder fact this 5 years old can share? Lol.

Johnchew TAK1 start first..

John Chew got 200 shares in all the counters in Bursa is it?

Very diversified portfolio...=D

Woah? u ignore all the facts mikekim share?

U go up and copy and paste back. I stop making a clown out of you.

If you don’t blow what the hell u doing here?

Monkey with a pig brain can’t recognize that he is blowing. But blowing opposite direction nia.

I dont get anything. So what if volume is low?
So what if volume is big? What you get? =D

You cannot have large volume trading sideway?
You cannot have large volume tanking the price?

Which school did u graduate from? U go to technical class, they always use volume as indicator. And they ONLY use technical indicator that support their "prediction". And they give you like 20 examples to convince you its something. You go woahhhh so li hai like typical unsuspecting victim in a scam talk.

But what you didn't do is to find out, out of 100 times, how many times it's actually accurate. The answer is it's very little. The 20 that they showed you is out of the 999999 that didn't work. The odds are slightly better than buying toto la. Aduh.

What's more important is no seller. Then buyer will have no choice but to buy higher.

At this point, there are alot of 50/50 people on Armada because of the "risk".

if you scroll back to what the proof proof guy said, he is wrong 2 out of the many since he last wrote. He said, Armada won't be able to settle it's short term loan. But it was refinanced with Long Term Loan. He said Armada won't be able to secure jobs. But armada secured jobs in India.

And this Johnchew that only thing he can read is he is a sohai and respond with gibberish garbage like ye ke? ye ke? Sohai betul. Ahahaha

u know what is the only thing large volume means?

Hint: Broker is making tonnes of money. THAT IT! =D

Yinson got Zero volume. Go tell them they gonna die too. =D

johnchew, can you read or count? I'm not promoting Armada anymore. Armada can promote itself.
I'm here to make a clown out of urself....

Geco, u say Yinson is transparent. Now, tell me...how much is Yinson's orderbook? What's each FPSO orderbook and what's it margin.

P.S. I think the answer is You don't know. And you parroted what analyst claim that it's transparent.

Why bother with facts with John Chew? You can read mer? You can write mer?

All also cannot. Only can pok pek pok pek like a stupid here only.

Alamak..this week The Edge Weekly quote Maybank IB Research put SELL CALL to Apanama with a target price of RM 0.00..better cabut tomorrow morning..

wait, no need cabut...nvr listed...hahahaha..:)

Here why ppl buy at 30sen. When more good news come; they sell higher.

And these ppl who sapu, they are not chicken shit that sells for 0.5sen profit.

As what’s called “risk” turns out to be unfounded, market will hv no choice to re-rate it. If you don’t buy also don’t matter. Someone else will. So to the fearful, keep ur money under pillow. When dark skies clears above armada, u can always come back and buy.

And I will be more than happy to sell to you in future. When armada stable and secure EPS of 5sen per annum at PE 25.

P.S. just go buy Yinson la. 6 bucks niama. Big, good, transparent and “net cash” company. Here is 30sen because it’s lousy. Come back buy at 1.2 when it’s good ok?

How do u count ur next cash again?

When revenue from Yinson tanked from Vietnam FPSO. I wanna see how Yinson do their reporting and how research house gonna write their stories next year May.

The perpetual bond they have was just 1Billion. It's just 1/3 or 1/4 of their total debts. Then, market the bond as equity. Bonds although no final date of settlement; it comes with premium. Let say Revenue tank by 1/3 or a 1/4, premium on the billion perpetual bond the same; I wonder wats the margin then. I don't market is very efficient is accurate calculating the damage. I'm alot of analyst including myself is working on it..


I do agree Yinson hv less garbage if compared to Armada. Armada bought alot of garbage, dunno which CEO did that. Thanks to him, else also no chance to enter.

Now doing house cleaning. Administration expenses drop 20-30mil, dispose all non-profitable asset and focus on core profitable business. Bring cash position back first before buying more "asset"/garbage.

That monkey that didn't buy in and sour about it, mar simply say got impairment. Impair on what?

When Armada kept delaying final acceptance, I exited everything at 81sen and stayed on the side watching. If they don't deliver kraken, there must be penalty somewhere. Impairment impending and stay far far away. That time, when the court starts trial also havent decide.

Even there is claim on the impairment, it shouldn't be reflected on income statement. It should appear on Cash Flow statement. As those loses were already report in 2018, just this time will hv material implication.

However, if the reported impairment losses in the past didn't materialize or materialize less than it should; there will be impairment reversal. WHich will appear as gain in income statement. (Correct me if i'm wrong)

I started entering at 40sen, and all the way down to 15sen and buy even more when Kraken starts to meet it's deliverable and trial has fixed a date to end the suit. End of this year, until next year june latest. It took armada 3Q report to tank the price from 80sen to 15sen, i'm not surprised if it takes 3Q to get back to 80 sen. That would be somewhere next year June. Those who are confident with their assessment on armada at 15sen will be doing multi bagger by next year june if everything goes well.

Mind you, at Q1,18; market has already priced in the risk. Kraken delay in acceptance and claire cancellation aren't new news. And see what happens? It tanks. The point is; assuming market is efficient in "pricing in" then how do u explain after knowing all the risk, market trades at 81sen and to only later wipe 70% market cap off? Market is inefficient. I bet less than 1% of people that read every letter and every word in QR and even less people understand totally what it means. That's where the opportunity as investor lies. Market are mostly people like you. IGNORANT. I wouldn't say i'm not ignorant, it's just i'm less ignorant.

P.S. Don't just read the first 5-7 pages of the Quarter report. Read every letter and word. And read across the whole sector of your interest. Read how Perisai get into this state and later read how Yinson write their QR report. Like 12-15 Quarter Report.Then make relation market reacts to each style of writing. And also see how research house writes their article to manipulate the market. that's if you are serious in addressing you concern and risk management. What I say here isn't about Armada. Its about you being serious in risk management. If you not interested, then better just F off and buy toto better.

read all losses between Q1-Q4,18. Armada reported loss. Huge loss.

But if u read the fineprint somewhere if I remember correctly, it says it has no material implication.
That's called impairment. Impairment is a type of accounting loss.

Actually, technical stories hasn't start yet. It's all fundamental.

When Armada managed to refinance it's current liability to long term loan, the possibility of cash call has been greatly reduced.

This CEO is prudent. He has reduced administrative expense by about 20-30 million and also selling underutilized assets to strengthen cash position. I suspect he had problem with previous boss disapprove buying all these assets. Upon taking over, he seems to be immediately know what to do to turn things around. Its reflected in the financial statements. Few numbers has bottom out and turning around.

Wanna see goreng2, see Dayang, Penergy or Carimin.

P.S. I know that tactic of stirring hornets nest to get free education.

a company recovering from shit storm and a company with shit storm heading their way.

U should know which to invest and which to steer away.

If you bet against research house and analyst. Out of 10 times, U will win 7.

Hasn’t anyone learn anything from subprime? The bonds the banks and the research house. Betting against housing bond is foolish. At the end, The few who bet against the house walked away richer at the expense of others misery.

I’ll be interested to see report on March 2020. And see what the house writes this time.

Leon reported everything. No need report also report. What u think? This guy just reverse those really no need pay one back to the income statement. That’s not untrue also. What the f u think Yinson has been doing? Isn’t that they blowing bigger bubble? Investor from Yinson should come over. Yinson Is over blown bubble and this is a growing bubble. U choose.

Zero depreciation. ZERO! Ada logic kah?

Now, it’s just gonna see who burst the bubble.

No. When u pick me my statement and use cheat.

I don’t simply call people ignorant. Unless they asked for it.

Scroll back and u should know when I sailang...

I don’t think u neither know to read nor count. So, it won’t make a difference

When 15sen that time. I blow what also no use. 90sen Down to 15sen. How to explain? All I can say is, it can’t go lower.

Now everything shows recover. Those who believe blower when 15sen to 30 made 100% by now.

To us that join since the crash from 60sen, would know it’s still far away from getting priced fairly.

Armada revenue still strong. Cash position getting stronger. Now what?

Cannot count 1, 2, 3 anymore is it? Teach a monkey with a pig brain can do better than you.

U provoked me by Using the word cheat. Then I’m obliged to defend myself.

U ask pang, I back my word with evidence.