Stocks In Focus MY (Bina Puri, Gamuda, Texchem Resources) – 27/03/15
Bina Puri Wins RM291m Contract
Construction services provider Bina Puri Holdings has secured an RM291.2 million project from the Energy, Green Technology and Water Ministry, to build a sewage treatment plant in Titiwangsa, Kuala Lumpur, which is expected to contribute positively to the net assets and earnings of the group in the current financial year.
The project, to be completed in 18 months, entails the construction, equipping, testing and commissioning of the Bunus regional sewage treatment plant, including the maintenance of the project for 12 months.
The award is to expand and upgrade the existing Bunus regional sewage treatment plant at Jalan Chan Chin Mooi, which will increase its treatment loading capacity of sewage discharges to handle additional sewage discharges of 750,000 residents in the vicinity.
Significance: With the latest win, Bina Puri has managed to secure projects worth RM419.7 million in 1Q15, boosting its unbuilt orderbook to RM2.1billion. In addition, the group has also been actively participating in the tender for projects both local and overseas.
Construction Segment To Support Gamuda’s 2H15 Performance
For the second quarter ended 31 January 2015, Gamuda recorded a 26.2 percent rise in revenue to RM653.2 million, attributable to its additional stake in Kesas, the concession holder of Shah Alam Expressway. Quarterly, net profit grew 7.1 percent to RM182.2 million.
CIMB Equities Research noted that the firm’s results were broadly in line and expects the group’s 2H15 performance will be dragged by weaker property sales but offset by Mass Rapid Transit (MRT) profits. The research house added that it was not too negative on the three to six month delay in MRT 2.
Momentum is projected to pick up in Gamuda’s construction segment, as the financial progress of the underground works for MRT 1 is now at 64 percent. The research house said that the negative takeaway from the firm’s results briefing was the over 30 percent cut in management’s FY15 property sales target to RM1.2 billion that is slightly lower its forecast of RM1.4 billion.
Significance: Overall, CIMB Research has maintained its FY15 earnings per share (EPS) forecast, as it expects FY15 to be another record year but cut FY16 to FY17 EPS for slower property sales. The research house also retained its ‘Add’ call on the stock, noting that catalysts include the RM27 billion Penang Transport Master Plan that could emerge from mid-2015 and successful sale of its 40 percent-owned Syarikat Pengeluar Air Selangor Holdings
Restaurant Business To Drive Texchem’s Growth
Texchem Resources sees the restaurant division, its main contributor to profits, as a catalyst for earnings growth and plans to list the restaurant business within the next five years, according to group executive chairman Tan Sri Fumihiko Konishi.
However, the firm notes that while the restaurant business, which will be its main focus for, looks promising as it offers high margin and high growth, it will continue to grow its three other business divisions, namely industrial, polymer, and food.
Japanese restaurant chain Sushi King, operated by Texchem’s 70.35 percent-subsidiary Sushi Kin, is the largest contributor to Texchem’s restaurant division. 12 more Sushi King outlets are expected to be added by year-end, bringing the total outlets to 102 and there are also plans to bring the chain into Indonesia in 2015, pending the authorities’ approval for the halal certificate.
Significance: Texchem has set a capital expenditure budget of RM25 million for its restaurant business over the next two to three years in a bid to bring in more new brands, funded from the RM102.2 million proceeds from the disposal of a 28 percent in Sushi Kin in 2014. With its gearing ratio has dropping to below 0.2 times after the disposal, the firm wants to embark on expansion plans, targeting an ideal gearing ratio of 0.5 times.
http://www.sharesinv.com
Bina Puri Wins RM291m Contract
Construction services provider Bina Puri Holdings has secured an RM291.2 million project from the Energy, Green Technology and Water Ministry, to build a sewage treatment plant in Titiwangsa, Kuala Lumpur, which is expected to contribute positively to the net assets and earnings of the group in the current financial year.
The project, to be completed in 18 months, entails the construction, equipping, testing and commissioning of the Bunus regional sewage treatment plant, including the maintenance of the project for 12 months.
The award is to expand and upgrade the existing Bunus regional sewage treatment plant at Jalan Chan Chin Mooi, which will increase its treatment loading capacity of sewage discharges to handle additional sewage discharges of 750,000 residents in the vicinity.
Significance: With the latest win, Bina Puri has managed to secure projects worth RM419.7 million in 1Q15, boosting its unbuilt orderbook to RM2.1billion. In addition, the group has also been actively participating in the tender for projects both local and overseas.
Construction Segment To Support Gamuda’s 2H15 Performance
For the second quarter ended 31 January 2015, Gamuda recorded a 26.2 percent rise in revenue to RM653.2 million, attributable to its additional stake in Kesas, the concession holder of Shah Alam Expressway. Quarterly, net profit grew 7.1 percent to RM182.2 million.
CIMB Equities Research noted that the firm’s results were broadly in line and expects the group’s 2H15 performance will be dragged by weaker property sales but offset by Mass Rapid Transit (MRT) profits. The research house added that it was not too negative on the three to six month delay in MRT 2.
Momentum is projected to pick up in Gamuda’s construction segment, as the financial progress of the underground works for MRT 1 is now at 64 percent. The research house said that the negative takeaway from the firm’s results briefing was the over 30 percent cut in management’s FY15 property sales target to RM1.2 billion that is slightly lower its forecast of RM1.4 billion.
Significance: Overall, CIMB Research has maintained its FY15 earnings per share (EPS) forecast, as it expects FY15 to be another record year but cut FY16 to FY17 EPS for slower property sales. The research house also retained its ‘Add’ call on the stock, noting that catalysts include the RM27 billion Penang Transport Master Plan that could emerge from mid-2015 and successful sale of its 40 percent-owned Syarikat Pengeluar Air Selangor Holdings
Restaurant Business To Drive Texchem’s Growth
Texchem Resources sees the restaurant division, its main contributor to profits, as a catalyst for earnings growth and plans to list the restaurant business within the next five years, according to group executive chairman Tan Sri Fumihiko Konishi.
However, the firm notes that while the restaurant business, which will be its main focus for, looks promising as it offers high margin and high growth, it will continue to grow its three other business divisions, namely industrial, polymer, and food.
Japanese restaurant chain Sushi King, operated by Texchem’s 70.35 percent-subsidiary Sushi Kin, is the largest contributor to Texchem’s restaurant division. 12 more Sushi King outlets are expected to be added by year-end, bringing the total outlets to 102 and there are also plans to bring the chain into Indonesia in 2015, pending the authorities’ approval for the halal certificate.
Significance: Texchem has set a capital expenditure budget of RM25 million for its restaurant business over the next two to three years in a bid to bring in more new brands, funded from the RM102.2 million proceeds from the disposal of a 28 percent in Sushi Kin in 2014. With its gearing ratio has dropping to below 0.2 times after the disposal, the firm wants to embark on expansion plans, targeting an ideal gearing ratio of 0.5 times.
http://www.sharesinv.com
