Stocks In Focus MY (Berjaya Auto, SapuraKencana, Wah Seong) – 09/12/14
Berjaya Auto 2Q15 Earnings Double
For the second quarter ended 30 September, Berjaya Auto recorded an 80.1 percent surge in revenue to RM508.8 million, as net profit more than doubled to RM57.5 million, primarily due to higher sales volume of Mazda vehicles in both Malaysia and the Philippines.
Gross profit margin for the quarter improved 3 percentage points to 15.1 percent, attributable to favourable sales mix and a weaker Japanese Yen against the ringgit.
The group has announced an interim dividend of RM0.0325 per share and noted that despite the intense competition from other major car players in Malaysia and the uncertainties of the effects of the goods and services tax, it expects the impending launch of new Mazda models to help maintain growth momentum.
Significance: In a separate report, CIMB Equities Research anticipates a more challenging 2H15, as it expects all major auto makers to step up their promotional activities and aggressive campaigns to gain market share. Nonetheless, the research house expects Berjaya Auto to outperform its peers.
SapuraKencana’s Business Resilient
MIDF Investment Research believes SapuraKencana Petroleum order book of RM28 billion is robust enough to withstand short-term shocks, as 70 percent of the group’s orders are from domestic oil companies.
The group has also announced a series of contract wins, worth RM1.6 billion, which have been secured by all of its three core business segments, namely offshore construction and subsea services, drilling, and fabrication, hook-up and commissioning division.
The research house believes that the fall in the group’s share price is not only the result of weak global crude oil prices and the capital expenditure cut at Petroliam Nasional but also impacted by its relegation from the Securities Commission’s list of syariah-compliant counters.
Significance: MIDF Research has reiterated its ‘Buy’ rating on the SapuraKencana with a revised target price of RM3.70 per share, down from RM4.86 last month, noting that the group’s shares had been subjected to heavy battering pursuant to the decline in global crude oil prices.
Wah Seong Plans To Sell Green Power In Cambodia
Wah Seong Corporation, via its indirect subsidiary PMTI Energy (Cambodia) Co (PMTIEC), is venturing into a biomass power plant project in Cambodia by supplying electric energy to Baitang (Kampuchea) for 20 years.
PMTIEC has signed a power purchase agreement (PPA) with Baitang to sell up to 3.5 megawatts per hour of electricity generated to Baitaing from the first day of the completion of initial capacity test. The supply of electricity may be renewed and extended perpetually by mutual agreement between PMTIEC and Baitang in writing.
The group shared that PMTIEC would leverage on Cambodia’s abundance supply of rice husk waste as a reliable source of renewable energy for electricity power generation.
Significance: The venture is in line with the group’s strategy of developing a portfolio of renewable energy/power plants in the region and is expected to contribute positively to the earnings of Wah Seong over the power supply period of 20 years
http://www.sharesinv.com/
Berjaya Auto 2Q15 Earnings Double
For the second quarter ended 30 September, Berjaya Auto recorded an 80.1 percent surge in revenue to RM508.8 million, as net profit more than doubled to RM57.5 million, primarily due to higher sales volume of Mazda vehicles in both Malaysia and the Philippines.
Gross profit margin for the quarter improved 3 percentage points to 15.1 percent, attributable to favourable sales mix and a weaker Japanese Yen against the ringgit.
The group has announced an interim dividend of RM0.0325 per share and noted that despite the intense competition from other major car players in Malaysia and the uncertainties of the effects of the goods and services tax, it expects the impending launch of new Mazda models to help maintain growth momentum.
Significance: In a separate report, CIMB Equities Research anticipates a more challenging 2H15, as it expects all major auto makers to step up their promotional activities and aggressive campaigns to gain market share. Nonetheless, the research house expects Berjaya Auto to outperform its peers.
SapuraKencana’s Business Resilient
MIDF Investment Research believes SapuraKencana Petroleum order book of RM28 billion is robust enough to withstand short-term shocks, as 70 percent of the group’s orders are from domestic oil companies.
The group has also announced a series of contract wins, worth RM1.6 billion, which have been secured by all of its three core business segments, namely offshore construction and subsea services, drilling, and fabrication, hook-up and commissioning division.
The research house believes that the fall in the group’s share price is not only the result of weak global crude oil prices and the capital expenditure cut at Petroliam Nasional but also impacted by its relegation from the Securities Commission’s list of syariah-compliant counters.
Significance: MIDF Research has reiterated its ‘Buy’ rating on the SapuraKencana with a revised target price of RM3.70 per share, down from RM4.86 last month, noting that the group’s shares had been subjected to heavy battering pursuant to the decline in global crude oil prices.
Wah Seong Plans To Sell Green Power In Cambodia
Wah Seong Corporation, via its indirect subsidiary PMTI Energy (Cambodia) Co (PMTIEC), is venturing into a biomass power plant project in Cambodia by supplying electric energy to Baitang (Kampuchea) for 20 years.
PMTIEC has signed a power purchase agreement (PPA) with Baitang to sell up to 3.5 megawatts per hour of electricity generated to Baitaing from the first day of the completion of initial capacity test. The supply of electricity may be renewed and extended perpetually by mutual agreement between PMTIEC and Baitang in writing.
The group shared that PMTIEC would leverage on Cambodia’s abundance supply of rice husk waste as a reliable source of renewable energy for electricity power generation.
Significance: The venture is in line with the group’s strategy of developing a portfolio of renewable energy/power plants in the region and is expected to contribute positively to the earnings of Wah Seong over the power supply period of 20 years
http://www.sharesinv.com/
