Confused on OR...remisier to me, if u trade OR u have to buy bankdraft to purchase, but trade online nornally have to pay directly to broker...tak faham..
#Dunknow, I think what your remisier meant was if you buy the OR you can only make payment (bank draft) to the registrar, you can't make online payment ie M2U.
Why I wanna sell. I have been asking people to buy this since April. HUAT AH!!!! I made tons of money in the last few weeks. My rights issue also tens of thousands lol that's how heavy I am inside. 1.1 bil market cap, I will keep it for years until it hits 3-4 Bs...strong regional oil and gas service provider liao...just keep if you don't have anywhere else to park...HUAT AHHHHHHHHHHHH!!!!!!!!!
Following a series of impactful acquisitions and contract awards over the past six months, Uzma is poised to record stronger results from 2H14 onwards. We increase our 2014-16 net profit forecasts by 7-16% to incorporate the earnings contributions from these acquisitions. With this, we raise our target price to RM4.40 but downgrade to HOLD as share price has risen 46% ytd and thus provide limited upside. We remain positive on Uzma over the long run. A good entry price is RM3.60. WHAT’S NEW A series of material announcments in 1H14. In 1H14, Uzma made a few major announcements: a) Spent RM114m on two acquisitions (RM95m for Thai-based MMSVS which owns seven hydraulic workover units (HWU) and a truck mounted service rig; and RM19m for Premier Enterprise Corporation, a oilfield chemicals trading company, b) the Uzma-EnQuest consortium secured the Tanjung Baram RSC with an estimated project cost of US$30m for Uzma’s 30% stake, and c) a rights issue (1:1@RM0.75) which raised RM99m. Moving into 2H14, Uzma is poised to see a stronger set of results as these acquisitions and RSC consortium’s capex expenses will start to contribute to bottom line. EGM on 21 July for MMSVS acquisition. Uzma’s acquisition of MMSVS has yet to go through an extraordinary general meeting (EGM) but we believe shareholders will approve the acquisition, given the immediate strong earnings enhancement (five-month contribution in FY14) and exciting growth prospects. All of MMSVS’s assets are currently under operations (mainly in Thailand) and has a young average age of <5 years old. Given that the vendor has commited to sales targets of US$18m in FY14 and US$23m in FY15, we have imputed RM11m-12m net profits from this HWU business into our FY15- 16 forecasts, assuming a 15% net margin. Targetting first oil from Tanjung Baram RSC in 2Q15. We understand the RSC consortium is on schedule and is currently finalising its drilling programme. Drilling activity, which will involve a jack-up rig, is expected to start in Dec 14 /Jan 15 and first oil is targeted in 2Q15. On top of getting remuneration fees in the medium term, Uzma will also be benefitting from the RSC’s US$100m capex as it will provide services such as project management, wireline and slickline to the RSC. In 2H14 and 1Q15, Uzma is expected to recognise US$40m and US$50m of revenue respectively due to the RSC’s capex.
50% local market share on oilfield chemical trading. Post-acquisition of Premier Enterprise, Uzma’s chemical trading division would be able to widen its client profile and increase its market share to 50%, from the current 25-27%. Additionally, by combining the expertise of both companies, operating costs can be reduced via economies of scale. However, the earnings enhancement from this acquisition will be moderate, given Uzma’s strong earnings base from its other core businesses. We estimate Premier Enterprise will provide RM3m-4m net profit in FY15-16. STOCK IMPACT Earnings dilution not a concern. While we expect earnings dilution in 2014 post the 1:1 rights issue, we do not view this as a concern as the rights proceeds are used for acquisitions/RSC funding that provide clear earnings acceleration which could offset the dilution impact. Furthermore, our EPS could be further enhanced should Uzma use the remaining rights proceeds for more M&A or funding sizeable special contracts. One more M&A to go. After two major acquisitions, Uzma is targeting for one more acquisition by this year-end. The company is currently in negotiation to acquire a subsurface company, which could boost its capability to execute the RSC. Temporarily hike in borrowings. Management guided that both Tanjung Baram RSC and MMSVS acquisitions will be funded by a 70:30 debt-to-equity structure. This implies Uzma will add about RM135m loans to its balance sheet. However, this scenario will be temporary as Uzma has a strong ability to generate operating cash flow and the RSC consortium would be reimbursed for its capex after it begins oil production in 2015. Also, remuneration income will kick in once its capex and opex are fully reimbursed, which is expected by end-15. EARNINGS REVISION/RISK We raise our net profit forecasts by 7-16% in FY14-16 to incorporate the earnings contributions from MMSVS and Premier Enterprise Corporation. Risks include: a) oil prices dropping to below US$80/bbl, which will prompt oil majors to hold back capex spending in upstream activities, and this will lead to fewer contract awards for service providers, b) a delay in contract awards, which could impact Uzma’s orderbook replenishment, and c) changes in Petronas’s regulation policy, which may intensify competition or cause uncertainty in the industry, thereby hurting current service providers. VALUATION/RECOMMENDATION Downgrade to HOLD but with a higher target price of RM4.40. After factoring in the new earnings stream, our target price is revised to RM4.40 (previously RM4.00), with no changes to our valuation methodology, ie, at 16x 2016F PE and includes a RM0.14 NPV enhancement from its Tanjung Baram RSC. However, we downgrade Uzma to HOLD as share price has risen 46.3% ytd and thus would have much factored in the potential earnings from the recent acquisitions. Remains positive in the long run. While we opine Uzma has limited price upside in the near term, we believe it could achieve greater heights over the long run as the company is still eyeing for M&A that could complement its existing business while standing a good chance of securing some sizeable special projects. We advocate investors to accumulate Uzma shares should share price weaken. A good entry price is RM3.60. SHARE PRICE CATALYST Securing sizeable special projects. Successfully striking oil from Tanjung Baram field ahead of schedule. M&A that could provide synergies to its existing business .
Nope don't contra. next bull wave for Uzma is the next Q results. No point contraing cause too risky. Only will huat after next results out (which will be damn good). Accumulate from 3.70-3.80 and don't ever contra in this now. If you wanna contra pls go to ifca msc bhd lol
I have been an Uzma fan boy for almost a year ready. Made almost 80k from this counter alone. But today is the first day my Uzma shares are no longer my biggest bet, already 2nd now. I finally moved some Uzma funds to OSK PROP and its warrants because I strongly believe it will huat very soon. However, I commend all you loyal investors here who stayed strong and I still think Uzma can 2x but that will take 1-2 years. Thanks and may you all HUATTTTTT
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catcat
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Posted by catcat > 2014-06-28 13:24 | Report Abuse
Uzma is the right time to masuk? How the performend?