Bursa Malaysia - 5160
Bloomberg - HMCB:MK
Yahoo - 5160 .kl
Webpage - http://www.homeritzcorp.com/
Company
Profile
HOMERITZ engaged in the
design, manufacture and sale of upholstery furniture products in Malaysia.
HOMERITZ primary undertake Original Design Manufacturing (“ODM”) and Original
Equipment Manufacturing (“OEM”). HOMERITZ had its own brand which is “Eritz”.
1) Geographical
Information
HOMERITZ is operated in
four major locations which are:
1) Asia and Oceania (Excluding Malaysia) – 60.01
% of 2018 revenue
2) Americas and European Countries – 36.05
% of 2018 revenue
3) Malaysia – 2.56 % of 2018 revenue
4) Africa and Middle East – 1.37 % of 2018
revenue
2) Major Customer
HOMERITZ had three
major customer with revenue equal to or more than 10% of the Group revenue:
1) Customer A – 14.05 % of 2018 revenue
2) Customer B – 12.73 % of 2018 revenue
3) Customer C – 11.78 % of 2018 revenue
|
CONS:
|
|
è
HOMRITZ had three major customers which
contributed 38.56 % of the 2018 revenue
|
Financial
Statement
Trade receivables for
2018 had increase from RM 8,449,687 (2017) to RM 11,288,608 (2018) by RM
2,838,921 or 33.60 %. However the trade receivable pass due had significant
decrease from RM 403,660 (2017) to RM 1,949 (2018) 99.52 % decrease.
Ficed Deposit with
licensed banks had increase from RM 29,000,000 (2017) to RM 34,727,346 (2018),
19.75 % increase. Besides that interest rate range also increase from 3.70 % -
3.90 % (2017) to 3.50 % - 4.28 % (2018).
|
PROS:
|
|
è Almost no trade receivable had
past due
è Interest range in licensed bank
increase to 3.50% - 4.28 %
|
|
CONS:
|
|
è
Significant drop (99.52 %) of the trade
receivable had past due
|
There is an increase in
trade payable from RM 4,254,285 (2017) to RM 7,148,471 (2018), 68.03 %
increase.
|
CONS:
|
|
è
68.03 % increase in trade payables
account.
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Financial
Ratio
|
Description
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2018
|
2017
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Different
|
|
Gross
Profit Margin
|
0.44
|
0.48
|
-0.04
|
|
Net
Profit Margin
|
0.13
|
0.18
|
-0.05
|
|
Interest
Coverage Ratio
|
N/A
|
N/A
|
N/A
|
|
Effective
Tax
|
0.23
|
0.21
|
+0.27
|
Warrant
At 5 December 2018
HOMERITZ had 49,990,000 warrants unexercised with the exercised price of the warrants
to be RM 0.92 which are higher than stock price, RM 0.595 on 12/4/2019.
|
PROS:
|
|
è The Warrant is out of money hence
does not consider in the stock price
|
Dividend
and Bonus Issued for the past five year
HOMERITZ had constant
dividend for the past five year from 2014 – 2018 with the average dividend of RM
0.0402 included adjustment of bonus issued 1:2 on 3 July 2015 with the dividend
yield of 6.76% base on HOMERITZ stock price of RM 0.595 on 12/4/2019.
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Market
Research
HongLeong InvestmentBank (24 January 2019)
Price Target : RM 0.82
Estimated
Price
IVKLS Price : RM 0.66
Peers
1) LIIHEN
2) LATITUD
3) POHUAT
4) WEGMAS
5) SYF
6) JAYCORP
7) SWCAP
8) DPS
9) HHGROUP
10) SHH
https://ivkls.blogspot.com/2019/04/stock-review-homeritz-5160-homeritz.html
