most of the good news already known. just have to wait for results to show itself. whole market is down even export counters despite usd strengthening. hard for even syf to go up today. dont know if there is any coverage report out yet.
I just sold out all. Although US share market is not open yet, but you can see the index in yahoo finance as reference. It is -250p now. WTI crude left 32.22. I better hold cash first. Good luck to all of you.
If US DJ has heavy drop tonight, sure there is heavy selling tomorrow, especially tomorrow is Friday. Investors seldom want to hold stock during weekend.
KUALA LUMPUR (Jan 7): SYF Resources Bhd ( Valuation: 1.10, Fundamental: 1.10) is confident that the double-digit growth momentum in its bottom line will continue in the next two years, driven by new and existing property developments which it believes are in rental hotbeds, while its furniture business has found its niche with resource maximisation throughout the value chain.
After SYF Resources’ annual general meeting today, executive director Datuk Seri Chee Hong Leong said the group will be launching property projects worth some RM500 million in gross development value (GDV) over the next three or four years.
In this financial year ending July 31, 2016 (FY16) alone, SYF already has RM200 million worth of unbilled sales.
SYF Resources’ property development division was initially used to generate funding for its furniture segment’s growth after the group’s restructuring exercise in the early 2010s, but property sales have in turn become the group’s biggest earnings driver, said Chee.
In FY15, 52.27% of SYF Resources’ pre-tax profit of RM16.34 million came from its property development business. In 1QFY16, its net profit grew by 110.17% year-on-year to RM10.83 million, mainly because its property development segment’s pre-tax profit multiplied by nearly five times to RM6.65 million.
“We are launching our Lavender Residence in Bandar Sungai Long soon. That already has a big captive market for investors seeking rental income, with a lot of students needing accommodation there,” Chee told reporters.
As for its furniture business, Chee credited SYF Resources’ executive chairman and chief executive officer Datuk Seri Ng Ah Chai for adding the upstream business to SYF Resources’ value chain four years ago, which has enabled SYF Resources to “secure” its own space in the furniture industry and gain competitive advantages.
“We have two business units in each of our new upstream plant. Kiln dried timber and whatever that is left, we will use them for particle board or density board. Thus, there is no waste in raw materials.
“We sell the timber to local and foreign players and the balance [is used] for our own furniture manufacturing (downstream segment). This is the same as our boards segment, where we sell them to local furniture players and also for our own usage,” Chee explained.
While the boards segment made marginal pre-tax profit of RM987,000 on revenue of RM10.96 million in 1QFY16, Chee said SYF Resources will increase its overall capacity, as it will have three plants by FY17.
“We already have the first factory (for boards segment). The second plant will be fully on stream in the middle of this year, while our third plant is coming in FY17. So, we are going to have three plants in the board area, where each plant has the capacity of between 80,000 (cubic metre) cu m and 100,000 cu m.
“If all three run in full stream, the boards segment should generate about RM140 million revenue (annually), although some of the boards will be used for our own,” said Chee.
SYF Resources, which reached a 10-year high of 70 sen on Tuesday, closed at 66.5 sen today, valuing it at RM415.6 million.
KUALA LUMPUR: SYF Resources Bhd, which is looking to launch property projects with a total gross development value of RM500 million in Sungai Long and Semenyih in the next three to four years, plans to start paying out dividends again by 2017 at the earliest.
The furniture manufacturer last paid dividends a decade ago. SYF ventured into the property development business in 2012.
"We feel our first objective is to bring up the numbers to a respectable level. To do that, we've to plough in a lot of cash and that means we have to sacrifice the dividend," said SYF executive director Cheong Yee Kiong.
"If we pay dividend, we have to borrow. If we borrow, our gearing goes up and it eats into our profits. We feel the right time is not now. When we don't have to grow so fast anymore and we have a certain level of earnings, then we can allocate some of the cash resources for dividend," he explained.
Executive director Datuk Seri Chee Hong Leong said for this year alone it plans to launch two projects in Sungai Long, which will have a GDV of RM100 million each.
SYF's unbilled sales currently stands at RM200 million.
"We're looking at RM500 million of GDV coming in from the property side, or about RM100 million a year. We've sufficient landbank to generate profits that we think are sustainable and we're looking at double-digit growth for the next few years," Chee told a press conference after its AGM here yesterday.
For the financial year ended July 31, 2015 (FY15), property development made up about 26% of SYF's revenue, while rubberwood furniture contributed the bulk of its revenue at 64%.
"For 2016, property will be driving the business but in the long run, we still see manufacturing as the stability factor," Chee said.
However, he cautioned that the property sector can be cyclical but added that SYF is here for the next few years and the property sector would have improved by 2018 or 2019.
"For the next four to five years, our property side will be quite stable and demand in the location that we're selling is not going to drop," said Chee.
SYF is focused in the areas of Sungai Long, Semenyih, Kajang and Cheras, with a preference for undertaking property development projects on a joint-venture basis.
"SYF is trying to be lean in the purchase of properties so that we do not gear up," said Chee, adding that the group has a gearing of 0.4 times.
Kuala Lumpur : Singapore’s UOB Kay Hian expects SFY to trade at 86.5 sen by as soon as the week after next.
The Research firm said the upside for SYF is some 30 per cent.
What is interesting about the report is that in this current financial year, SYF’s earnings landscape is going to change, with the furniture segment of its business which includes the particle board segment, increasing its profit contributor by 100 per cent.
What this means is that the furniture division profit for the current financial year will come in as RM25 million.
At this level it will match SYF’s full year group level profit of RM25 million for the 2015 financial year.
The Research house expects full year profit for 2016 to come in 42 million and based on that earnings expectation SYF’s price to earnings will be 8.2 times.
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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....
zulmuiz
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Posted by zulmuiz > 2016-01-07 11:43 | Report Abuse
inform ur guys k