This company indeed is for long term. The downtrend in share price should be mainly due to slower revision in tariff rate and lower profit for the past few year
Actually, another potential catalyst could be the remaining project from the Rasau Water. Hopefully they will atleast get win a project given their latest acquisition.. they should have the technical expertise...
Emm. It is for sure it will be below 50 cents but I suggest enter at 42 cents and sell at 46 cents. Keep = gg. Don’t trust this counter in long term. For those who keep saying this counter is for long term, from rm1 until 0.05 still blindly say for long term. No eyes see. Hahaha.
Recovery in utilities demand. Malaysia is progressing well into Phase 4 of National Recovery Plan (NRP), as national vaccination rate has hit an advanced stage while number of new Covid-19 cases remains under control. Demand for utilities, i.e. electricity and gas, are expected to continue its recovery trend into 2022 in tandem with the economic reopening. Furthermore, national borders are expected to be relaxed in 2022, with vaccinated travel lane (VTL) with a number of countries.
Companies that choose to ignore sustainability/environmental, social and governance (ESG) considerations in their business will not be sustainable as they will be deprived of both equity and debt financing to fund their projects.
According to Bursa Malaysia chairman, Tan Sri Abdul Wahid Omar (pictured), these companies will have to pay a higher insurance premium to underwrite some of their risks and will have difficulty in recruiting talents to drive their business.
Thankfully Ranhill business nature revolves around ESG
Who can explian why this company net profit increase, but net profit to ordinary share holders become lesser and lesser? They paid the most of the profit to who?
Previously if 80 % subsidary Ranhill SAJ (johor water treatment and suply) NP 20 million the NP to SH will be 16 million and 4 million to non controlling interest.
So Q4 result if NP of 16 million to non controlling interest is from SAJ then SAJ must has make NP of 80 million and NP to SH should be 64 million
So I really cannot understand why Q4 NP 22 million but NP to SH only 5.7 million.
Or one possibility is wholly owned companies make a loss of 58 million. Hence NP (80-58)=22 million NP to non controlling interest 16 million. Hence NP to SH balance (22-16)= 6 million.
Note: Ranhill SAJ 8O% holding Ranhil powertron I 60% holding Ranhil powertron II 80% holding
The question which wholly owned companies made a loss of 58 million?
Dear Ranhill IR Mr. Choo Chee Keen ir.info@ranhill.com.my
My name is Lee Soon Sheng. I am a shareholder of Ranhill and would like to seek an answerp from Ranhill’s BOD/Management of the following. I refer to Ranhill quarterly financial report: Q1: Net Profit; RM 13,069,000: Net profit to shareholder: RM 7,298,000 (55.84%) Q2: Net Profit; RM 13,091,000: Net profit to shareholder: RM 9,051,000 (69.14%) Q3: Net Profit; RM 17,941,000: Net profit to shareholder: RM 8,521,000 (47.49%) Q4: Net Profit; RM 21,995,000: Net profit to shareholder: RM 5,710,000 (25.96%)
The Net profit to shareholder is deteriorating My Question: Q4 Net profit to non-controlling interests: RM 16,285,000. If assume the non-controlling interest are Ranhill 80% subsidiary companies that men NP of these subsidiary company is RM 81,425,000 and NP to Ranhil is RM 65,140,000 Since the NP of the group is RM 21,995,000 hence some wholly owned companies of Ranhill is making loss of (81,425,000 – 21,995, 000) = (RM 59,430,000) thus NP to shareholder (65,140,000-59,430,000) = RM 5,710,000 Question 1: Which wholly owned companies make a loss of RM 59,430,000 in Q4? Question 2: What are Ranhill management actions moving forward to reduce loss of these wholly owned companies?
Thank you Your prompt reply will be appreciated.
Best Regards Lee Soon Sheng
Dear Lee Soon Sheng,
First of all, thank you for your continuous support to Ranhill as a shareholder and for taking the time to write to us.
Secondly, pertaining your inquiries, kindly find below our responses:
Q1: Which wholly owned companies make a loss of RM59,430,000 in Q4? A1: The low Profit After Tax And Non Controlling Interests (PATANCI) & high percentage of Non Controlling Interests (NCI) for Q4 & YTD were due to HQ overhead (Q4: RM13.7m, YTD: RM28.1m) and Corporate sukuk interest expenses (Q4: RM9.2m, YTD: RM36.3m) which was not shared by NCI. The NCI of RM35.5m consists of profits to NCI from Ranhill SAJ, Power division subsidiaries and Ranhill Worley Sdn Bhd whilst our shares will be approximately RM94+m (from similar subsidiaries) for the year deducting the Corporate sukuk interest (RM36m) & HQ expenses (RM28m), resulting in a PATANCI of approximately RM30m.
Q2: What are Ranhill management actions moving forward to reduce loss of these wholly owned companies? A2: Ranhill Management has been constantly initiating cost control measures to reduce cost across the group whilst exploring expansion opportunities to improve profitability.
Dear Ranhill IR Mr. Choo Chee Keen ir.info@ranhill.com.my
Thank you for your prompt reply. May I ask further what the equity holding % is of? If I am not mistaken Ranhill SAJ is 80% subsidiary, Power division is also 80% subsidiary and Worley Sdn Bhd I am not sure of % holding.
Hence if we assume 80% equity holding and with NCI net profit of RM 35.5 million then the net profit of these subsidiary companies is RM (35.5/0.2) = RM 177.5 million and 80% Ranhill shares of net profit will be RM 142 million and not RM94+ as stated.
Your clarification will be appreciated.
Thank you
Best Regards Lee Soon Sheng
Dear Lee Soon Sheng,
Thank you for your follow-up inquiry. We shall provide the necessary response in due course.
Sorry for the late reply @winsenlim68 as I just saw your comment. I already pare down my holding in Ranhill and move to plantation stocks that give good dividend.
As oil price remain elevated, I believe this would present opportunities for Ranhill engineering segment. Upstream increases capex which also means more works/maintenance jobs
First of all, thank Sslee for his afford writing to the co.
Q1: Net Profit; RM 13,069,000: Net profit to shareholder: RM 7,298,000 (55.84%) Q2: Net Profit; RM 13,091,000: Net profit to shareholder: RM 9,051,000 (69.14%) Q3: Net Profit; RM 17,941,000: Net profit to shareholder: RM 8,521,000 (47.49%) Q4: Net Profit; RM 21,995,000: Net profit to shareholder: RM 5,710,000 (25.96%)
Analysis, HQ overhead, Q4: RM13.7m, the other 3Q= 28.1m-13.7 = 14.4m (Avg = 4.8m per Q, however, from the NP and NP to shareholder, is believed that Q3 weighted heavier than the first 2Q. HQ overhead jumped drastically in Q3 and Q4.)
In short, for Q4, HQ overhead + interest expenses = 22.9m, while the profit attributed to shareholder merely 5.71m (1.356% over revenue 421.1m)
From Q4 report, The profit attributable to ordinary equity holder of the parent for the current quarter decreased by RM2.8 million from a profit of RM8.5 million in quarter 3 FY2021 to a profit of RM5.7 million mainly due to donation and corporate social responsibility works of approximately RM1.5m million and stamp duties of RM0.5 million.
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....
moremoneyy
24 posts
Posted by moremoneyy > 2022-01-11 14:02 | Report Abuse
Can anyone share their view on the company? not sure if this is good to hold for long term as compare to Cypark