Thank you very much. I know about the impending sales of damein and the effect it has on GOB share price. But then, this quartet's results have been quite poor. So too is last quarter if without the sales of 2 parcels of leasehold land.
GOB sale of land announced in August will bring profit of RM16 mil, and the sale of the damen shopping mall to pavilion will also be good for the group. Short term player esp on contra may not want to hold, but for long term, GOB is in a better position than it was a year ago...
Why it chose to recognize more expenses/costs first incurred for Da:men mall which is under construction and pending completion sale to Pavilion Reit??? Couldn't it classify and capitalize such costs first in its balance sheet under property development costs, instead of charging off in the P&L account so fast? Sigh....
@ value investor : you are right. The costs associated with Damien is about RM30M after comparing the segmental results between Q2 vs Q1. If they capitalise this cost, this quarterly results would have been a profit not withstanding the RM10M losses from the F&B sales.
I am not so concerned about the losses associated with Damein because I sincerely believe they can recoup it via sales of damein to Pavillion REIT.
But the losses concerning the F&B division of RM 10M is horrible. They should have exited the F&B business. It is not a business that they have a competitive advantage at all.
@ value investor - about the RM30M losses incurred for Damein, i think there is something happening behind the scene whereby maybe, just maybe, Pavillion REIT ask GOB to absorb the RM30M cost. Maybe that is the reason why they cannot capitalise this RM30M into the property development costs as this is not possible to recoup via sales to Da'mein.
not withstanding a bad quarter, whole year profit is still RM66M mainly due to the disposal of 2 parcels of leasehold land. I think we will end the year with profit due to the disposal of DaMein (but then, i still cannot understand why they do not wanna capitalise the RM30M as part of property development costs) and additional disposal of land at Seri Kembangan.
Also, not to forget the unbilled sales of RM400+M from its ongoing projects which has achieved 90%++ take up rate. this counter is still "safe" until the end of FY2016.
Over the long term, both Batu Kawan and Lembaga Getah projects will be main engine of growth.
But the F&B division is bleeding rather heavily. The main increase in OPEX is attributable to the F&B division. They should hive off the F&B division.
Gearing is at high risk now. Might be due to mismanagement of cash that's why even disposal of 2 parcel of land, the borrowing still increased by 70m. Certainly need to sell Da'men anxiously to get the money.
@ riskabsorber - come on lar...the majority of the gearing is mainly due to the credit draw down to build da'mein - which upon the sales of Da'mein - will make the company to become a net cash company. Please read the quarterly report and understand the company before commenting here. Thanks.
Kancs, I put my hands up to agree with your statement here:
"But the losses concerning the F&B division of RM 10M is horrible. They should have exited the F&B business. It is not a business that they have a competitive advantage at all."
Kancs, I mean the additional borrowing which is drawn down this year. The disposal of 2 parcel of land received the cash around 130m + additional draw down this year of 70m, Which is already 200m. How much funds needed to build Da'men ? Why need to pay additional interest when the company have 115m of cash ?
thanks a lots....managed to get some to top up at 57 from panic investors ... ...retained profit reflecting down at a range of expected 59 to 61 ...will move up slow slow ...we meet next qtr... Terima Kasih Banyak banyak!!
. Some of you have quoted an analysis of the results. Do please give us the link(s). Thanks.
No doubt GOB is cash rich. But I am seriously concerned about top line revenue in the quarter, only 36m, down from 121m in the corresponding quarter last financial year. Why so low? Houses in Batu Kawan not selling?
I have noticed some other developers have also reported serious revenue declines. The property market downturn seems really bad!
Generally last qtr property sales, no good ..greatly down as developers cut sales to maintain property price....that is strategy to down supply to move price up/maintain.., but retained profit compared yoy is better though compared q2q slightly down.. ..hold as most profit takers have already cut losses yesterday at 57
1147 (GOB °) DJ Global Oriental Malaysia 2nd-Quarter 2015 Earnings Summary Table >1147.KU 25-11-2015 09:03:00
Global Oriental (1147.KU) - Malaysia (2nd) quarter ended Sep 30: Figures Are In Ringgit (MYR).
2015 2014
Revenue 35,993,000 121,244,000 PreTax Profit -14,400,000 16,982,000 Net Profit -12,965,000 9,522,000 Earnings Per Share -2.85 Sen 4.19 Sen Dividend 0.00 Sen mtt
6 months ended Sep 30:
Revenue 260,018,000 213,862,000 PreTax Profit 96,497,000 26,545,000 Net Profit 65,835,000 15,001,000 Earnings Per Share 14.48 Sen 6.60 Sen Dividend 0.00 Sen mtt
"A high net profit margin indicates that a business is pricing its products correctly and is exercising good cost control..."
6 months ended Sep 30 compared NPM (NP/Revenue) despite this qtr2 make a rugi... not shown, but, please calculate yourself 2014-7% 2015-25% (>3x) EPS boleh tahan at 14.48% compared to 6.60% in 2014 qtr 1 performing well, qtr2 not, doesn't mean end of GOB lets see this qtr3/4...
i wanna write to their investor relations to confirm the following: - higher costs incurred for Da'mein maybe attributable to the RM28M paid to Revenue Concept - as agreed per the JV agreement btw GOB and the landowner. However, why this was not capitalised as part of the property development costs? - how much profit arising from sales of Da'mein to Pavillion REIT? - higher losses incurred from the F&B division. Whether this is attributable to the opening of new Grandmama's stores or Grand Harbour stores? Because i attended the AGM , it was mentioned they wanna open up new stores...
Disposal of USJ da men is one sided to Pavilion, it is not a clean sale from GOB & it is subject to price reduction if the actual occupancy rates & rental charges are not up to the mark.
Most importantly, GOB has to make sure the mall is 70% operated & rented with not less than RM9.20 sf, what a deal to Pavilion!
1. 签署SPA后6个月内,卖方必须成功出租至少85%空间,平均租金不能少于RM9.20 per square foot.
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
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New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Lim Chun Ping
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