Tuesday, October 27, 2009

Fajarbaru (RM1.26) 1QFY06/2010 Results: Ok ok, in line

Performance: Results as expected. Revenue & net profit rose 2.3% y-o-y and 68% y-o-y to RM40mil and RM4.4mil respectively. Net margins rose significantly to 11% from 6.7% in 1QFY06/2009. Nonetheless, on q-o-q basis, revenue dropped 27.5%, dragging net profit down by 28%. But this will be a non-issue as the lower revenue might be due to the shorter working period during the quarter owing to Hari Raya festive season.

More cash: Cash pile rose to a ballooning RM112.6 million from RM88.8 million (nice number 888) which translates into 69.3 sen, which is a huge 55.5% of the share price. Borrowings remain at zero. Taking off the cash part, its construction business will be valued at a mere PER of 3.8x!!! Where to find this kind of value??!! Some more construction net margins at double digits.

Share dividend!!: The company just declared share dividends in the ratio of 1 treasury share for 25 ordinary shares with EX date on 5th Nov 2009. This will further increase liquidity of its shares and boost the value of shareholders by approximately 5 sen per share (Assuming current price of RM1.26). A good move to shore up the share price. Worth accumulating now.

Shares issued : 162.6 million
Market Cap : RM204.9 million
Beta : ~1.0x
Dividend Yield : 2.5-3.0%

Disclaimer: The above article does not represent an investment advisory service as no subscription or management fees are charged. The contents of the article are provided as general information only and should not be taken as investment advice or as a recommendation to buy or sell any security or financial instrument. Any investment decisions carried out based on information, analysis, or commentary provided above is solely your responsibility. You should consult your investment adviser before making any investment decisions.

No comments:

Post a Comment