The contracts awarded by various companies are as follows : - 23rdMay 2017 :TSM Towers awarded RM 77mil project for 15 months - May 2017 : BCB Bhd awarded RM 207 mil project for 28 months - March 31 2017 : STP 1 Project, Penang, value at RM 31.6mil for 18 months - Sept 5 2016 : Ecoworld Eco Terraces, Penang , value at RM 146.7 mil for 2.5 years - July 27 2016 : Nusametro. Persiaran Dutamas, value at RM 338.8 mil for 38 months -July 19 2016 :Yong Tai Apple 99 Project @ Melaka, value at RM 213.75mil for 27 months -May 31 2016 : Eco Sanctuary Project , value at RM 172.4 mil for 25 months -May 19 2016 : BCB Bhd Johor, Elysia Park Residence, value at RM 312.85 mil for 36 months -Mar 3 2016 : CCCC award of STP2, Penang Project, value at RM 181.3 mil for 24 months - March 3 2016 : Kerjaya Prospek Vista Residences @ Genting Highlands, value at RM 102.45mil for 24 months It is currently having a total outstanding order book of RM 2.7 billion which will keep Kerjaya busy for the next 2.5 - 3 years.
My son optimus9199, are you still holding any of these: Gkent, Ekovest, Kerjaya, Econpile, superlon, magni, lii hen, padini, HSS, KESM, AEONCR, poweroot, AWC, Perstim, Yee Lee, Thong Guan, Poh Huat, MSC?
Kerjaya’s 1Q17 net profit jumped 22% YoY and 10% QoQ to MYR28.9m, accounting for 23% of consensus full-year estimate. The strong 1Q17 results were mainly driven by a 18% YoY rise in construction PAT. No dividend was declared for the current quarter.
Construction PAT was propelled by a 23% rise in revenue, supported by its outstanding order book of MYR2.6b. This more than offset a 0.6ppts decline in construction PAT margin (1Q17: 13.2% vs 13.8% in 1Q16). Kerjaya’s on-going projects are mainly awarded by blue chips property developers in Malaysia.
The stronger construction earnings also helped to offset: 1) a 70% YoY (-MYR0.6m) decline in manufacturing PAT (production of lighting products and kitchen solutions) mainly due to completion of existing project and intense competition; and 2) a 38% YoY (-MYR0.4m) drop in property PAT.
For Kerjaya, construction is always the bread and butter. Despite its strong order book of MYR2.6b, the group is still aggressively bidding for works. Its tender book is about MYR1.8b (historical success rate is ~20%). Meanwhile, the investment in industrialised building system aluminium formwork system should help to sustain its margins in the long-term.
On property, the group will be banking on its Vista Residences @ Genting Highlands (GDV: MYR300m), which has achieved a take-up rate of approximately 63% at end-Mar 2017. The group also has two more projects in the pipeline namely Genting Permai and Monterez, Shah Alam (likely launch in 2018) with a total gross development value of MYR500m. Unbilled sales were MYR70.7m.
Against strong construction pipeline and potentially stronger property earnings in the subsequent quarters, the street is forecasting a 12.8% 2-year EPS CAGR for FY17-19. Brokers are positively biased on the stock with one Buy and one Hold. The mean target price is MYR3.39.
While prospects look robust, the key setback here is that valuation is slightly on the high side. At current price, the stock is trading at 14.5x consensus FY17 EPS of 22sen, which is just a tad lower than the Bursa Malaysia Construction Index’s 2017 PER of 16.2x.
Note that the group is sitting on a net cash of ~MYR145m at end-Mar 2017, which is equivalent to about 28sen/sh. Also, the 2007/2017 warrants will expire on 20 Dec 2017, which upon converting, could raise another ~MYR15m to the group.
Kerjaya closed at RM 3.47 with new record high at RM 3.50 achieved.
Kerjaya-ca, closed at RM 0.36 sen. Ditto at RM 0.365 achieved. With premium 0.03 sen, premium percentage is 0.86 and gearing at 3.86 Expire on 29/7/17.
Vroom...vroom...
Next challenge target :-
1) RM 3.62 as per the edge article dated 9th June 2017
2) RM 3.69 as per UOB Kay Hian Securities
Imo- I still maintain my initial target price as reported on 15/4/17 at RM 4 despite dividend 5.5 sen payable on 29/8/17.
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....
goldenluck16
1,956 posts
Posted by goldenluck16 > 2017-05-22 16:43 | Report Abuse
Bonus coming