Hi Sifu hng, jumping in jumping out for nuts margin and finally forced landing before landing in Amsterdam. Hmmm.. still Sifu Icon has a better strategy..........
kwongliang, if you dunno the nature of finance and revenue recognition, you better just keep quiet... the management indicated in the latest report that they chose to only recognize the revenue in later quarters as currently these new mega projects are just at start-up phase... please read the report before you comment... HSL is not a lousy company.. they have never made a loss even once in their business... and their revenue and profit has been growing for >10 years...
Current Year Prospects The Group is now kept busy with project execution having successfully secured 2 major projects towards the end of first quarter 2016. Nevertheless, the Group will continue to focus its procurement effort related to its core business in infrastructure related projects which are under the Government agendas that generates opportunities for the Group. The Sarawak Corridor of Renewable Energy (SCORE) initiative as well as the forces of industralisation and urbanization provides further contract opportunities for HSL in the key SCORE growth node towns of Tanjung Manis, Mukah, Samalaju and the major cities of Sarawak. HSL foresees the property development segment with a variety of products will make greater impact on the business of HSL Group and is preparing for new launches in 2016 and beyond.
that means more revenue will be recognized in subsequent phases.. u will see surprise hike in their revenue due to the 2.7billion order books on hand... after all, i expect 2016 revenue to be higher than 2015 by end of Q4... just need a bit of patience guys.... and 2017 will be even better as these mega projects will get into more matured phases in 2017... that means more revenue recognition in 2017... buy on weakness now before it is too late...
“HSL has continued to be profitable every quarter since our listing and we have proven that we are a sound investment,” said Dato Paul Yu.
At the Edge Billion Ringgit Club Awards held earlier this week, HSL snared the award for Best Return on Equity (Construction Sector) over three consecutive years, an accolade that is testimony to the performance of the Board and the quality of project execution achieved by the company.
Tiada gunanya company bagus jika pergerakan harga yg jelas nak tipu pelabur.yg pasti hsl cd dari 7 sen turun kpd 3 sen.saya pun terperangkap oleh company yg jelas menipu
Even though has secured some big projects, but it is still in early phase yet, will take at least a year later will only reflect in quarter report. If projecting annualized EPS 2 sen x4 = 8 sen. Based on price today 1.72, PE at least 20 above.....= = Nta around around 1.20 only...
Hock Seng Lee – Robust Order Book Of RM2.3 Billion, Possible 30% Upside? Shares Investment By Tan Jiahui | Shares Investment – Thu, Sep 29, 2016 3:30 PM SGT
To be more precise, land reclamation, dredging and other specialised water-related engineering projects falls under a niche segment called marine engineering (or marine civil engineering). This time round, we take a closer look at Sarawak-based infrastructure firm Hock Seng Lee (HSL), who is seen as a beneficiary of the increased infrastructure spending in the region. Given Sarawak’s swampy terrain, reclamation usually needs to be carried out before most construction activity can take place and HSL with its marine engineering expertise has an edge in this area. Business HSL started as a company principally engaged in dredging and land fill operations. As the firm grew in size, it began undertaking land reclamation projects of larger size and complexity, establishing itself as the Sarawak’s market leader in land reclamation. Along the way, the group also acquired complementary expertise in soil improvement works, shore protection, drainage and water reticulation activities. Consequently, the firm diversified into a wide range of civil engineering and constructions works, which includes road works, township developments, tunnel boring as well as other infrastructure projects. While the company has also dabbled in property development, its construction business is still the largest revenue contributor, accounting for 95.1 percent of FY15 turnover. Since its listing in 1996, revenue has been on a general uptrend, albeit lumpy at times due to the nature of its project-based business. Similarly, net profit has also been fluctuating over the years, underpinned by the lumpy revenue recognition and cost pressures faced. That said, HSL has remained profitable each year since its listing, a commendable record. Promising Outlook Underpinned By RM2.3b Order Book Based on the close price of RM1.75 per share as of 28 September, HSL’s shares have slid approximately 18.2 percent from a high of RM2.14 per share in March. Apart from market volatility, the lacklustre 1H16 results was probably a main contributor to the poor share price performance. For 1H16, top line fell 25.8 percent to RM249.3 million while earnings declined 22.9 percent to RM28.3 million. The weaker results were mainly attributable to lower revenue contribution for newer projects and the completion of older projects. However, turnover and net profit are expected to pick up in 2H16, on the back of successive job wins for two major projects worth RM1.9 billion in 1Q16. The two contracts secured were for the RM750 million Kuching City Central Wastewater Management System (Package 2) project (HSL’s stake: 70 percent) and the RM1.7 billion Pan-Borneo Highway package 7 (HSL’s stake: 75 percent). With the latest contract wins, HSL’s order book was boosted to RM2.3 billion as of 30 June 2016, which should keep the firm busy and provide earnings visibility for the next four to five years. As the new projects were only secured in March, revenue recognition was negligible for 1H16 though the pace is projected to pick up going forward. Healthy Balance Sheet With Zero Debt Apart from the outstanding order book, HSL also boasts a strong balance sheet with no debt and RM113.8 million in cash and equivalent and short-term investments as of 30 June 2016. While the current dividend yield of around 1.4 percent is nothing to shout out about, we like that the firm has been consistently rewarding shareholders with dividend payouts in each year since its listing.
Overall though, analysts on the streets appear to be rather optimistic on HSL, with the consensus rating equivalent to a ‘Buy’ call and an average target price of RM2.26, which implies a possible 29.1 percent upside from the close price of RM1.75 on 28 September.
rocky.. u r once again proven to be a silly short-term speculator who expects buying a share today and gaining 100% the next day or so... did I say it will "explode" immediately? mind ur words... i was collecting it when it was trading at low price and hold it for future growth when they are recognizing more revenue for Pan Borneo and Kuching City Central Wastewater Management System (Package 2) projects (during more matured construction phase)... the previous quarter just saw these 2 projects kick-started and recognized less revenue.. can you be less silly when commenting? if u have done zero homework, i suggest you just go gambling in casino....
Agree with hng33... last quarter result was soft because the PAN BORNEO project was at the kickoff phase so not revenue was not recognized.. in new few quarters, the revenue from Pan Borneo and the Kuching City waste water project... see below
However, turnover and net profit are expected to pick up in 2H16, on the back of successive job wins for two major projects worth RM1.9 billion in 1Q16. The two contracts secured were for the RM750 million Kuching City Central Wastewater Management System (Package 2) project (HSL’s stake: 70 percent) and the RM1.7 billion Pan-Borneo Highway package 7 (HSL’s stake: 75 percent).
With the latest contract wins, HSL’s order book was boosted to RM2.3 billion as of 30 June 2016, which should keep the firm busy and provide earnings visibility for the next four to five years. As the new projects were only secured in March, revenue recognition was negligible for 1H16 though the pace is projected to pick up going forward. Healthy Balance Sheet With Zero Debt Apart from the outstanding order book, HSL also boasts a strong balance sheet with no debt and RM113.8 million in cash and equivalent and short-term investments as of 30 June 2016.
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Posted by SALAM > 2016-08-18 16:34 | Report Abuse
Hi Sifu hng, jumping in jumping out for nuts margin and finally forced landing before landing in Amsterdam. Hmmm.. still Sifu Icon has a better strategy..........