Dear guys, facilitiy division doing fantastically good!!!but the environment stream and engineering are not!!!!environment strem hit by poor property sentiment!!!
FY 2017-18 ended on 30th June 2018. FY 2018-19 starts on 1st July 2018. Therefore next quarter financial results should be 1st Quarter FY 2018-2019 i.e. from 1st July 2018 to 30th September 2018.
TW's profit guarantee of RM8M for this Q not included. This means it will be included in 2nd Qtr. Amount of profit guarantee for next Qtr is RM8M. So Qtr2 PAT is likely to be about RM15M. So price rise all the way to after CNY 2019?
It's better than both the corresponding qtr last year and the preceding qtr. It's 20% improvement on corr qtr and 25% improvement on preceding qtr. Likely >100% improvement in next qtr with the inclusion of TW's profit guarantee.
Profit guarantee for 2019 is RM20M not RM8M. RM8M is suppose to be recognised in 1st Qtr i.e. current qtr just reported. So RM8 is deferred to 2nd qtr. So expect to be more than RM8M for 2nd qtr.
AWC Bhd’s 1QFY19 net profit registered a 19.9% Y.o.Y jump to RM2.1 mln, as opposed to RM1.8 mln a year ago, largely underpinned by improved contribution from the IFM and Engineering segments, as well as lower operating costs. Revenue, however, grew slightly by 3.5% Y.o.Y to RM68.5 mln, from RM66.2 mln in the same quarter last year. AWC has also declared final single-tier dividend of 0.5 sen per share, payable on 28th December, 2018. Comments The reported earnings and revenue were in-line with our estimates, accounting to 21.4% and 24.2% of our previous full-year projected net profit and revenue of RM28.3 mln and RM282.7 mln respectively. Moving forward, we expect higher earnings, in-tandem with the recognition of profit guarantee from Trackwork (approximately RM6.0 mln per year). Although the reported results were within our expectations, we adjusted our forecast net profit for FY19-FY20 by 2.0%-3.0% after accounting for slight changes in depreciation and net interest costs. We maintain our BUY recommendation on AWC with a higher target price of RM1.25 (from RM1.20), by ascribing an unchanged target PER of 12.0x to its FY19's EPS of 10.2 sen as we remain positive on AWC’s long-term earnings accretion from recurring IFM projects and strong orderbook. Our target PER remain at a discount to its closest peer, UEM Edgenta Bhd, mainly due to the AWC’s smaller market capitalisation.
Wait for the announcement for exercise date. But exercise price is much more important than date. Normally the life of warrants is about 3 to 5 years and holders can exercise to but the shares or sell the warrants during the life of the warrants.
The exercise price likely to be low, that's likely why the price drop 10%. But those who sold out forget that the net profit is on the way up due to TW.
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....
Sean888
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Posted by Sean888 > 2018-11-27 14:13 | Report Abuse
Dear guys, facilitiy division doing fantastically good!!!but the environment stream and engineering are not!!!!environment strem hit by poor property sentiment!!!