CENTURY (7117) - Century Logistics: One-off gain
At first glance, it looked good. Everything was improving. Nothing is better than that.
However, when
looking at its income statement and cash flow statement, one may not
find it hard to notice that there were actually gain of asset disposal
as well as fair value gain on its investment property being recorded in
FY2014.
Management
mentioned it too at the chairman statement. To me, the transparency is
good as they separate it out individually and clearly for these one off
gain as to some companies, they would put under "Other Income" section.
For that case, one need to zoom down to the operating cash flow section
for confirmation.
Yes, they disposed its plant in Thailand and Port Klang last year. Total one off gain for FY2014 was around RM17 million.
If deduct the one
off gain, the PBT would be RM42.4 - RM17.1 = RM25.3 million. It's still
higher than FY2013 as there was a fair value gain of RM10.5 million
recorded in FY2013 too.
Thus, the net profit for FY2014 would be around RM25.3 x 0.75 (25% tax rate) = RM19 million
EPS for FY2014 would be RM19 million / 365,019 = RM5.2 cents.
Based on closing price of RM0.825, PE would be around 16.
There was some
growth prospect in the group like net cash for the first time, new
multi-storey warehouse in Klang that expected to commence at the end of
2015 and higher contracts from MNC in PTP warehouses.
I think the price is little bit fully-valued already. Limited upside.
But wait, a technically breakout from long term down trend with high volume?
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