Was attracted by the steady growth of sales and net profit of this company over years hence spent some time looking at its financial data. It turns out that total equity is increasing over the last few years, but mainly contributed by receivables and inventories. Cash on hands doesn't change much.
Below are data extracted from 2017 Q4 till 2020 Q4
Total Equity 879m -> 1110m (+26% or 231m)
Non-current trade receivables 136m -> 200m (+47% or 64m)
Inventories 82m -> 169m (+106% or 87m)
Current Trade and other receivables 238m -> 349m (+46% or 111m)
Cash flow (net cash) 2017 Q4 till 2019 Q4: 185m -> 210m (+13% or 15m) 2017 Q4 till 2020 Q4: 185m -> 186m (+0.5% or 1m)
did you factor in the dividend payout over the period ? The company may found their optimum cash flow at this level while those excess cash used as dividend distribution ? Just curious and might need to check in detail.
The sharp drop could be due to fear of low profit in 3Q due fairly long periods of MCO..However, it already has ongoing projects (besides contract wins if any in the near future) to keep it busy...So, i feel kerjaya should rebound in the latter part of this year or early next year.. my speculation..
Kerjaya Prospek Group Bhd is expected to deliver a stronger earnings performance in the final quarter of the financial year 2022 (4Q22) as it makes higher work progress and is aided by declining construction material prices.
There is also anticipation of further job wins for the construction group after it secured RM1.57bil worth of contracts since the beginning of the year, which slightly surpassed its financial year 2022 (FY22) new job target, said Kenanga Research.
Kerjaya’s tight labour situation has eased with the arrival of 400 to 500 new workers (total guided for 750 by the year’s end).
Kenanga Research is targeting a flat replenishment of RM1.5bil of job wins in FY23 for reclamation and building jobs, and further semiconductor and data centre construction jobs with its partner Samsung.
The company also has two property development projects in its pipeline, namely Monterez, which has a gross development value (GDV) of RM250mil and had a soft launch in June 2022, and Yakin Land, which has a GDV of RM380mil, and will be launched in the first half of FY23. Foundation work has begun for both projects.
TA Research said after stripping out an exceptional net loss amounting to RM2.4mil, Kerjaya’s core profit for the first nine months of 2022 was RM88.6mil.
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