KUALA LUMPUR (Nov 26): Taliworks Corp Bhd's net profit almost doubled to RM19.68 million in the third quarter ended Sept 30, 2018 (3QFY18) from RM10.01 million a year ago, on higher contributions from the construction and water treatment, supply and distribution divisions.
In a statement today, the infrastructure company said this was further supported by lower cost of operations specifically from lower rehabilitation and maintenance cost incurred in its Langkawi operations.
"Additionally, the group accounted for its share of toll compensation of RM4.1 million received in respect of the non-increase in scheduled toll rate hike on Jan 1, 2016 for the New North Klang Straits Bypass Expressway," Taliworks added. This resulted in higher earnings per share of 0.98 sen for 3QFY18 compared with 0.5 sen for 3QFY17.
Quarterly revenue was also up 32.4% to RM98.36 million from RM74.31 million a year ago.
The group also declared a third interim dividend of 1.2 sen per share amounting to RM24.2 million, for the financial year ending Dec 31, 2018 (FY18), payable on Jan 31, 2019.
For the cumulative nine months (9MFY18), the group's net profit jumped 94.5% to RM44.7 million from RM22.98 million, while revenue rose 17% to RM277.13 million from RM236.94 million in 9MFY17.
"The third-quarter results has somewhat given us a momentum towards year end and we will remain focused, and committed to our business strategy by leveraging on Taliworks' expertise and leadership," said Taliworks executive director Datuk Ronnie Lim.
"We believe we have the capabilities to maintain a healthy growth that would inevitably ensure clear earnings visibility and sustainable dividends to our shareholders," he added.
As at Sept 30, 2018, total receivables owed by Syarikat Pengeluar Air Selangor Sdn Bhd (SPLASH) to Taliworks stood at RM701.8 million, of which the total accumulated provision for discounting of said receivables made was RM185.6 million.
the proposed 1.2 sen dividend after the recent 3 for 5 bonus translate to the same 2 sen dividend declared before the bonus. this means the company is keen to maintain the dividend payout. only thing is whether a special dividend will be paid later at the end of the 4q.
HL Invest: Taliworks’s 9MFY18 earnings of RM57.0m (-8% YoY) were within both our and consensus estimates. YTD core PATAMI decreased due to lower contribution from associate. Taliworks is expected to benefit from rollout of water infrastructure projects given its experience in construction of water infrastructures and its role as O&M operator for SSP1 in Selangor. Maintained forecast and BUY rating with unchanged SOP-driven TP of RM1.01. Management guided that the Selangor water consolidation exercise should be completed by 1st January 2019 if everything goes on schedule. Assuming that management follows the repayment schedule proposed by Air Selangor, the company would distribute total 7.2 cents dividend annually which translates to 8.6% of dividend yield based on current share price. Maintain BUY, TP: RM1.01. Maintain BUY rating with unchanged SOP-driven TP of RM1.01. Management guided that the whole Selangor water consolidation exercise should be completed by 1st January 2019 if everything goes on schedule. Assuming that management follows the repayment schedule proposed by Air Selangor, the company would distribute total 7.2 cents dividend annually which translates to 8.6% of dividend yield based on current share price. We also do not discount the possibility of lump-sum upfront special dividend if management choose to monetize the receivables with third party institutions.
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....
OPR_must_cut
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Posted by OPR_must_cut > 2018-11-09 10:19 | Report Abuse
Before bonus 1.2 cheap? Sun also can rise from west true?