SCIENTX (4731) - Scientex: Slowed By Forex Loss
SCIENTX 森德综合 4731 SCIENTEX INCORPORATED BHD
Scientex FY15Q2 Financial Result
| SCIENTEX | FY15Q2 | FY15Q1 | FY14Q4 | FY14Q3 | FY14Q2 |
| Revenue | 462.9 | 431.1 | 415.4 | 426.8 | 383.5 |
| PBT | 47.3 | 40.2 | 56.0 | 48.1 | 44.4 |
| PBT% | 10.2 | 9.3 | 13.5 | 11.3 | 11.6 |
| PATAMI | 36.1 | 30.3 | 48.8 | 37.2 | 33.9 |
| Manu Rev | 327.0 | 320.3 | 297.3 | 317.2 | 288.5 |
| Manu OP | 17.4 | 14.7 | 18.8 | 16.4 | 15.9 |
| Prop Rev | 135.9 | 110.8 | 118.1 | 109.6 | 95.0 |
| Prop OP | 40.3 | 32.0 | 36.9 | 32.5 | 29.3 |
| Total Equity | 808.6 | 769.8 | 712.7 | 686.2 | 649.9 |
| Total Assets | 1533.3 | 1475.8 | 1400.4 | 1333.2 | 1304.4 |
| Trade Receivables | 340.2 | 303.2 | 243.5 | 274.8 | 251.7 |
| Inventories | 81.3 | 83.7 | 109.0 | 82.1 | 76.3 |
| Cash | 121.7 | 102.9 | 83.8 | 56.4 | 89.3 |
| Prop Dev Cost | 117.0 | 104.0 | 104.6 | 71.8 | 74.4 |
| Total Liabilities | 681.4 | 664.7 | 665.0 | 624.9 | 633.3 |
| Trade Payables | 232.1 | 246.6 | 272.1 | 238.9 | 214.2 |
| ST Borrowings | 311.4 | 297.9 | 262.9 | 179.1 | 205.8 |
| LT Borrowings | 50.2 | 66.6 | 77.5 | 156.2 | 163.7 |
| Net Cash Flow | 38.0 | 19.1 | -68.4 | -95.8 | -62.9 |
| Operation | 16.4 | 1.5 | 153.5 | 89.5 | 30.9 |
| Investment | -4.0 | 13.2 | -149.2 | -106.7 | -67.0 |
| Financing | 25.5 | 4.5 | -72.7 | -78.6 | -26.8 |
| EPS | 15.98 | 13.69 | 22.09 | 16.43 | 15.34 |
| NAS | 3.58 | 3.47 | 3.22 | 3.10 | 2.94 |
| D/E Ratio | 0.30 | 0.34 | 0.36 | 0.41 | 0.43 |
At a glance, Scientex's FY15Q2's revenue and PATAMI are better both QoQ and YoY. So that's good enough.
Scientex
has a huge percentage of its bank borrowings (77% or RM280mil)
denominated in USD at the end of FY15Q1. In current quarter, it has
dropped to (58% or RM210mil).
Inevitably,
Scientex has to recognize a RM9.7mil foreign exchange loss (RM9.2mil
realized loss) in Q2 due to weakening of RM against USD.
If this amount is added back to the PBT, then the PBT of RM57mil is actually its record high.
To
recap, Scientex registered RM5.2mil forex loss in the preceding quarter
of FY15Q1. So total forex loss in the first half of FY15 is RM15mil.
It has forex gain of RM4.4mil in FY14Q4.
I
think the worse should be over even though US seems reluctant to raise
its interest rate early. Ringgit might still break its recent low
against USD but it might not be as severe as the last few months.
Moreover, I'm pretty sure that Scientex management will continue their effort to reduce its exposure to USD debts.
In
FY15Q2, revenue from both manufacturing and property segment hit record
high while their operating profits show significant improvement
compared to previous quarter of FY15Q1.
FY15
6 months PATAMI of RM66.3mil is slightly higher than RM63.3mil in the
corresponding period of FY14 despite the huge forex loss in FY15.
New
property sales so far in 1HFY15 stands at RM397mil, which represents
84% of the total revenue of its property division in the last 4 quarters
added together (RM474mil), which I think is great.
Total property sales in the whole FY14 was RM470mil.
There
is no info regarding the latest unbilled sales. Its unbilled sales in
the end of FY14Q4 was RM537mil. Current unbilled sales should be at
least RM650mil I guess.
For
its manufacturing division, it's all the old stories again. Its CPP
film expansion is on track to be completed by the end of CY2015 while
its new BOPP film plant should be ready by second half of CY2016.
Overall,
I'm quite surprise by its property sales achievement in 1H15 (provided
that the figures given by Kenanga is correct). It will give me more
confidence to continue my investment in Scientex.
At the moment, I'll just keep my own target price at RM7.75.
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