1QFY12 earnings grew by 11% YoY to RM19.6m (3.58 sen/share) making up 20% of ours and consensus’ estimates respectively. Consistent delivery… YoY, revenue grew by 13%, buoyed by a pick-up in construction activities which grew by 14%. Property growth…The projects are expected to come on stream in 2013 and will see greater contribution going forward. RM1bn order book…Overall, HSL has an outstanding order book of ~RM1bn, translating to ~1.8x FY11’s construction revenue and ~1.2x order book-to-market cap ratio. Maintain TP of RM2.21 based on 12x average FY12 and FY13 earnings.
HSL was awarded a 26 million ringgit of government projects. The company received Sarawak Ministry of Industrial Development Letter of Intent, will be responsible for the infrastructure projects of the Industrial Park in Kuching, Di Mala do not (Demak Laut). Analysis The MIDF study Hock has made 100 million $ 1 million ringgit contracts, accounting for 36% of the bank forecast full-year 500 million ringgit contract the new contract so that the hands of the group contract orders increased from 1.7 billion to 30 million ringgit . The bank believe that the forecast of 500 million ringgit contract may be up to Hock is Sarawak's primary contractor, can benefit from the state's booming construction activities. The bank to maintain a buy rating and target price of RM2. Leong said that the assumptions to make the rate of 10%, the new contract will make the company's earnings per share increased by approximately 0.5 cents. The company had earlier announced first quarter results, the Malaysian study, turnover and net profit forecasts slashed 16%, delayed due to the state awarded the engineering contract to prepare the election. The bank believes that the the Hock depth of involvement in a number of projects to promote economic growth in Sarawak, the stock 2012-2014 fiscal year PE ratio of only 6 to 9 times, has been underestimated, so keeping buy recommendations and target price RM 59 cents.
target price of RM2.59 represents ~70% upside.. the stock is significantly UNDERVALUED & trades BELOW ITS MEAN. this provides opportunities for investors to increase their wealth in the long term. i strongly believe the stock will be appreciated & upgraded as 500m contract shd be achievable this year.
a bit undervalued, but same to others and almost quite a lots of counters are undervalued, but this is normal in share market (undervalued or overvalued), if all counter is set to be in valued, then that is not share market... that is supermarket, i think...
any sifu here can tell me why am i only getting RM 87.50 for HSL dividend ? i bought 5 x RM 1.52 = RM 7600. dividend 12% X RM 7600 so i thought at least to have a RM 700 ++ dividend ?
Dear Melvin since the experts are not responding, I the amateur will give you an idea of why you got only RM87.50.
Please be aware that dividends are not paid on the value of stocks that you purchase now in this case RM7,600.00. HSL is a 20sen share and therefore the actual value of 1000 units of HSL share is only RM200. Value of 5,000 unit is RM1,000. You are only getting 12% of RM1,000.00 that is RM120.00 and after minusing tax of 25% you should get RM90.00. I am not sure how you got RM87.50.
dkny, sometime said from earlier postings that this company has a cash horde of RM200million, is it true?
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Posted by dknycom > 2012-04-06 15:09 | Report Abuse
HSL may hit RM 1.40 today. Now RM 1.41 already.