More projects do not meant anything. Profit margin is the key. This company profit margin of construction division is worst, PAT is less than 3%. Work like cows but earn sikit. How good it will be?
cresbinvest why your maths so poor? RM 5.598 million/RM 84.701million(PAT/Sales)<3%(latest QR)?
cresbinvest More projects do not meant anything. Profit margin is the key. This company profit margin of construction division is worst, PAT is less than 3%. Work like cows but earn sikit. How good it will be? 03/11/2016 09:54
I am conservative. I take PAT 6%. Outstanding projects RM 2.3 billion. Say 3 years to complete projects. 1 year avg profit RM 45 million or PE only 6 times. If take PE 10(Gadang even higher base on latest QR), Pesona TP 70 sen.
the company seems to be good in securing contracts but the extremely low profit margin is a persistent problem. net margin hovers around 3-4.5%, even lower than those mega infra projects, I wonder where all the costs go to...
what is so good? big project? have big project does not mean can make money and do correction. behind still same chin boon loeng. how good can it be? if counter so good why need syndicate to play?
My frend say past 3 4 years property development projects a lot a lot a lot make construction materials expensive make labour shortage expensive make sub contractors lsly expensive. But now property too many all developers stop projects so next 3 4 years construction materials no expensive labour no shortage no expensive sub contractors no lsly 10 sub con queue for 1 contract. NP Margin going be very high.
My frend say the Kenanga make ass u me by using lower end assuming weaker construction margins for FY17. For FY 17??? like god only
We value PESONA at RM0.485 base on 9.0x FY17E PER with a Trading Buy call. We feel our valuation is justifiable as it is at the lower end of the applied valuation range for small mid cap peers in our universe of 9.0-13.0x due to their weaker construction margins
My frend say Kenanga use the make people laugh very the low 400m project win the lowest profit margin the lowest PE for the 2017 to say price is the 48.5 cent.
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....
cresbinvest
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Posted by cresbinvest > 2016-11-03 09:54 | Report Abuse
More projects do not meant anything. Profit margin is the key. This company profit margin of construction division is worst, PAT is less than 3%. Work like cows but earn sikit. How good it will be?