if compare quarter result exclude the payment to nestle the result still good..century gotta work harder along with CJ in 2017! 2017 financial is crucial to see whether the synergy with cj korea works or not..
actually the result is kinda impressive as the loss to Nestle court case had cost them 2.25 millions. If the effect of the settlement was excluded, the pre tax profit would have increased by 21%. There's nothing wrong in fact theres improvement of the company operation.
Good Q4 results, it is a good sign of turnaround...
The Q4 result is comparable to last year's Q4 in terms of revenues and net profit margin, at about 8.4%, which is much better than the average 6.7% for whole year (avg. 6.1% for last 3 Qs). If the rm2.25M paid to Nestle is added in, then the Q4 net profit is about rm8.5M (net profit margin 11.4%), it's better than previous financial year...
Furthermore, the company say that this coming year will see contributions from CJK's network and infrastructures, and don't forget it's new multilevel warehouse to be completed this year will also contribute more profits.
After 4 months of handover, transition period, planning, reorganization, etc, it's about time for CJKE to fire up their newly modded engine and start running Century on all cylinders...
Hope i4investor got it right..., buckle up our seatbelts and get ready to enjoy the ride...
In order for company to grow, company need to be merge with a company who can give positive synergy. No doubt logistics industry having hard time now, can consider this as a phase out period. The strong one will stay. Furthermore, u need to understand Century's business model. They don't just transport goods, they do procurement which is value added, warehousing and so on. With the ecommerce booming, as u can see financial reports from POS, Gdex etc its increasing..do u think CJ korea will let go the pie?
Just give them some time..koreans just joined in..wait until next financial year report out and decide whether worth to continue on-board this Century or not lo...
if company wants grow and merge is good but its not the case, the exboss sold off his share to the korean. its not a merge nor take over. second question to think of is 1.45 is the "value" of the company or it just the korean synergy value. the later one have nothing do with minority shareholder of century. it just mean nothing to minority.
Century wants to merge and Koreans wants to take control, so big shareholder has to give way, its also an opportunity for him to exit at right price..its a win win for them. If a company has no value or any useful would you acquire it to be your proxy? If CJ buys in open market, the share wouldnt be enough for them to sit on the board and its not a peaceful deal. So, in order for CJ to secure their board seat in peaceful manner, they have to pay a price.
With the merger with CJ, its better than being standstill and being a boring logistic firm. Now, let's just move on from the 1.45. Just wait and see what's their plan to bring Century moving forward.
As to why CJ don't take over, it could be other large shareholder in Century disagree? or CJ just want to focus on their parcel delivery business to be the top 5 in global?
To answer why did Datuk Phua sell off his share if the merger is good? Look at it this way, the founder is already 68-yo (67 last year) and should be time for retirement, because the Logistics industry is currently going through hard times, so may be better for him to sell at a good price and retire or do something else more enjoyable. If he refused to sell his 26.2% shares, then it wouldn't be possible to have any MERGER & ACQUISITION in the first place. At Rm1.45/share, the sale price is much higher than Century's historical high, he probably was laughing all the way to his bank. So it's considered a right timing and good price for Datuk Phua to exit the company. The other major shareholder who sold off was Teow Choo Chuan (rip) who held 5.37%.
On the other hand, his nephew Teow Choo Hing who is the MD, still holds 11.3% of Century but didn't want to sell his stake, because he said he is confident of the company's future after the merger, and at 56 yo, he is still young and able (he is a Civil engineer), so he chose to stay on and hold on to his shares, and hopes to increase his fortune after the CJK's e-Commerce become successful...
On the other hand, his nephew Teow Choo Hing who is the MD, still holds 11.3% of Century but didn't want to sell his stake, because he said he is confident of the company's future after the merger, and at 56 yo, he is still young and able (he is a Civil engineer), so he chose to stay on and hold on to his shares, and hopes to increase his fortune after the CJK's e-Commerce become successful...
Thanks to Bones. Management confirmed to leverage on CJK in the quarterly announcement and last 2 years, spent RM50m plus on the new multilevel warehouse. Can consider the upside based on these two events. Do your research.
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....
GOD_OF_KLSE
138 posts
Posted by GOD_OF_KLSE > 2016-12-22 11:52 | Report Abuse
CHEE-BUY CENTURY .... AH-PEK COMPANY !!!