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Thursday, February 25, 2010

Faber Group (RM1.66): Fantastic Results, Still Cheap!!

Faber just released its 4Q 09 results which is nothing short of fantastic. Revenue for 4Q09 rose 105.7% y-o-y to RM303.9 mil while net profit increased 138.3% y-o-y, bringing the full year net profit of RM82.7 mil or EPS 22.9 sen. This far exceeded my expectations of RM60mil and has already reached near my expectations of RM85 mil for 2010.

Backed by its recurrent IFM business coupled with improving property outlook, net earnings will continue to improve. Valuations are still very cheap at historical PE of just 7.3x (I'm talking of historical PE, not even forward PE) and earnings will continue to grow on the back of higher contribution from Mid East and property sales. Balance sheets remain healthy with net cash of about RM120 mil.

For previous post on Faber, click here.

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