Dont forget upcoming disposal 750m to malakoff, may drop around 20 sen due to short selling and ikan bilis selling, but i believe the banks and chinamen will be happy to collect , going forqard to future X50 and more models
After reading the news. DRB HICOM 66% revenue come from automotive shall list automotive as stand along entiry to prevail true value. The rest sector may drag down this heavy weight counter. MBMR base is so slim it just take few days to gap up.
First of all, one cannot compare the profit for this quarter with last quarter because, last quarter's result was boosted by the property division that had recognised RM 175 million revenue that delivered RM 134 million profit or 76% margin !! One can see that this is an unrealistic profit level and is unlikely to be repeated.
In fact, we should be comforted that Proton's revival has confirmed that DRB has finally turned around.
Further good news is as follows:-
(a) there is a total of RM 1.4 billion of armoured vehicles (44 units) that has to be delivered by end of this year. Which means to say next 2 quarters will see at least a RM 700 m revenue per quarter compared with only RM 355 m this quarter; (https://www.theedgemarkets.com/article/drbhicom-gains-traction)
(b) If POS is successful in getting an increase in tariff, from current RM 0.60/stamp to RM 1.00/stamp which is the lowest increase since 1957, and assuming that mail volume continues to drop by 10%, POS in 2019, its profit will increase by RM 30 million per quarter, which is enough to offset RM 15 million loss suffered in the latest quarter. Note that the last tariff adjustment was almost 10 years ago; POS delivered 655 million mails in 2018
(c) Composites Technology Research Malaysia Sdn Bhd (CTRM), has an order book of RM8.3 billion, which should be a good buffer; CTRM is involved in the aerospace and composite industries; (https://www.theedgemarkets.com/article/drbhicom-gains-traction)
Lastly, the Automotive division contributes 65% of revenue and 74% margins to DRB and it is the division that is growing, so DRB is indeed on the right track.
5 likes for Viva Vivo sharings . We cannot compare the previous qr results as the profits derived from one off disposal gains that contributed to qoq and yoy gains . Drb is on the right traction and platform to perform better in the next qr results.
drbhcom worth to invest. retailers owes analyse solely on figure but dn knw the high revenue was generated through disposal. come on. use your mindset and we all knw drbhcom is a legend that turns a making loss company to profitable company
Epf buy sell buy sell is their norm and routine behaviour . Despite with epf selling since August, share price of drb keep moving up handsomely which means investors have already discounted all along , selling and buying have no significant impact to the share price mah !
Seems like many pols pour cold water for drb.. Just wait and see.. Sometime earning not good, stock may still in GREEN.. for this case.. For those who contra might scared.. For those who see the potential, they won't panic.. Just like Geely bought over volvo, their share gain 100%.. This will happen for drb hicom..
One cannot compare base on QoQ. Need to compare YoY. If YoY is + than is very good. Cannot expect every Q must go higher and higher. In this DRB QR is consider very good making money. No body earns the same amount every day.
I totally agree with those looking at the prospects of DRBHCOM rather than comparing the results. DRBHICOM is producing results that are long term worthy having 3 back to back positive quarterly earnings. Looking at the current revenue, it is clear that the automotive sector is going to be a very large contributor to the company and the price of DRBHCOM shouldn't settle any lower than RM3.
All the best for those holding the stock. Time to break the RM3 level!
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Ncm88
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Posted by Ncm88 > 2019-08-23 20:13 | Report Abuse
May end up like bjtoto