8494 LBICAP
Company
Overview
·
Three
business activity & sales %:
i.
Management
services - 3.74%
ii.
Development
of properties - 96.03%
iii.
Trading
of rubber product - 0.23%
·
Company
website: http://www.lbi-capital.com.my/
Personal
Comment
·
LBICAP
is a low profile company; its trading of stock volume is low.
·
It
hit lot of criteria to pick a good fundamental company, that is:
i.
PE
low with 5.
ii.
High
ROE with 16.67%.
iii.
Acceptable
DY with 3.56%.
iv.
High
NTA with RM 1.66.
v.
V.
ROA with 10%.
·
But
cash flow is the weakness of LBICAP, historical cash flow in category operating
and financing activities giving bad result.
·
After
deduct total bank borrowing from cash holding, LBICAP is a net negative cash
company.
·
LBICAP
should solve its cash problem to be a healthy cash company.
·
On
the hand, free cash flow of LBICAP is showing healthy and it is increasing in
yearly.
·
From
earning valuation model, it giving intrinsic value RM 2.02.
·
The
catalyst needed by LBICAP is new property development project.
·
In
Greenblatt's Magic Formula, earning yield and return on capital giving 11% and
12%% respectively.
Additional
Information
·
Property
development is the source of revenue and revenue of LBICAP. Current LBICAP's
townhouse project Desa Saujana 2 at side of completion period.
·
Second
phase of industrial turnkey development I-Hub@Puchong expected launched this
year.
·
Project
in Section 14, PJ which h comprising 11 units bungalow expected launched by
Q3''2015.
·
LBICAP
also planning to redevelop earlier wet market plan into 24 units’ double storey
shop office.
·
LBICAP’s
bank borrowing need cleared soon because the maturity within one and two years
amounted to RM 34,143,262.
·
There
is uptrend on Revenue, Net profit and ROE since year 2011.
·
Dividend
is decreasing since year 2012 but the DY is maintained above 3%.
·
Here
a latest news showing LBICAP going disposed 4 lands with RM 50 million,
management going use this cash by:
i.
RM
3.5 million clears bank borrowing.
ii.
RM
25 million acquires other land.
iii.
RM
18 million used on working capital.
iv.
Amount
left charged by RPGT and expenses.
·
Director's
active transaction on acquire LBICAP shares and warrant -
http://www.klse.my/stock/insider/director/all/8494.jsp#stockDetailDiv
·
LBICAP's
active shares buy back activity in year 2015 -
http://www.klse.my/stock/insider/company/shareBuyback/8494.jsp#stockDetailDiv
·
LBICAP's
last buy back share is year 2010, and next is year 2015, is it management think
the current price of LBICAP is undervalued?
本文只供参考。共勉之。
http://investmentkai.blogspot.my/2016/01/8494-lbicap.html
