Stocks In Focus MY (Cypark, Kim Loong, Mah Sing Grp) – 02/01/15
CYPARK (5184), KMLOONG (5027), MAHSING (8583)
Cypark 4Q14 Net Profit Falls 28%
Environment technology company, Cypark Resources, saw its net profit in 4Q14 fall 28.2 percent from RM8.9 million in the same period a year earlier to RM6.4 million while its revenue dropped 11.8 percent to RM50 million.
According to the company, the lower figures were mainly due to lower revenue generated from environmental engineering projects as well as provision made for year-end bonus, administrative expenses and unrealised foreign exchange differences.
The firm said its renewable energy division, which saw revenue increase by 57.8 percent from RM21.2 million in the preceding financial year to RM33.5 million in the current financial year, was expected to contribute significantly in the near future in view of the Government’s push for renewable energy usage.
Significance: Despite the fall in the company’s 4Q14 net profit, its FY14 earnings was up 11.2 percent from RM35.9 million to RM39.9 million and top line grew 7.4 percent to RM237 million.
Kim Loong 3Q15 Earnings Down 4%
Plantation group Kim Loong Resources recorded a 3.7 percent dip in 3Q15 net profit to RM15.2 million due to a RM3 million impairment of assets and provision for the financial implications of a 1 December 2009 court case against its subsidiary, Winsome Pelita, regarding their customary rights to land which is expected to result in an unfavorable outcome for the firm.
On the other hand, revenue for the quarter rose 9.6 percent to RM179.4 million, attributable to higher palm oil prices and fresh fruit bunches (FFB) production. However its earnings per share were 4.88 sen compared with 5.09 sen previously.
The firm said that its 3Q15 FFB production at 77,600 tonnes was 12 percent higher compared with 3Q14. As most of the FFB produce was supplied to mills within the group, its plantation operations did not face problems in selling it. It added that 3Q15 revenue from its palm oil milling operations increased by 9 percent, achieving profit of RM13.8 million.
Significance: The group expects palm oil prices to remain stable at its current level for 4Q15 and its FY15 crude palm oil production quantity and FFB production by its plantation operations to be at least 15 percent and 10 percent higher respectively. Financial implications of the court case will also be reassessed when a full judgement is obtained.
Mah Sing To Focus On Mid-Range Segment
Mah Sing Group expects to continue with its strategy of targeting the mid-range market whereby 84 percent of its launches in 2015 will be priced below RM1 million. Strong overall demand is projected for mass market properties, reflected in the success of its launches in the mid-range, mass market projects.
Demand stems from first time home buyers, upgraders, new household formations and government incentives for first time home buyers under Budget 2015. Its projects in the mid-range market will also benefit from ongoing and proposed major infrastructure projects such as the Mass Rapid Transit, Light Rail Transit and extension together with the proposed High Speed Rail.
The group has also acquired landbanks in both Puchong and Seremban, to target the mass market and upgraders. In addition, it acquired part of the Sultan Salahuddin Abdul Aziz Shah Golf course in Shah Alam to cater to the high-end market in the medium-long term. These acquisitions have a collective potential gross development value of approximately RM19.3 billion.
Significance: Mah Sing has managed to deliver its various key performance indicators in terms of sales and financial performance, with RM2.5 billion of sales in 9M14, a 25 percent compounded annual growth rate in revenue and net profit over the last five years and a 15 percent return on equity on average.
http://www.sharesinv.com
CYPARK (5184), KMLOONG (5027), MAHSING (8583)
Cypark 4Q14 Net Profit Falls 28%
Environment technology company, Cypark Resources, saw its net profit in 4Q14 fall 28.2 percent from RM8.9 million in the same period a year earlier to RM6.4 million while its revenue dropped 11.8 percent to RM50 million.
According to the company, the lower figures were mainly due to lower revenue generated from environmental engineering projects as well as provision made for year-end bonus, administrative expenses and unrealised foreign exchange differences.
The firm said its renewable energy division, which saw revenue increase by 57.8 percent from RM21.2 million in the preceding financial year to RM33.5 million in the current financial year, was expected to contribute significantly in the near future in view of the Government’s push for renewable energy usage.
Significance: Despite the fall in the company’s 4Q14 net profit, its FY14 earnings was up 11.2 percent from RM35.9 million to RM39.9 million and top line grew 7.4 percent to RM237 million.
Kim Loong 3Q15 Earnings Down 4%
Plantation group Kim Loong Resources recorded a 3.7 percent dip in 3Q15 net profit to RM15.2 million due to a RM3 million impairment of assets and provision for the financial implications of a 1 December 2009 court case against its subsidiary, Winsome Pelita, regarding their customary rights to land which is expected to result in an unfavorable outcome for the firm.
On the other hand, revenue for the quarter rose 9.6 percent to RM179.4 million, attributable to higher palm oil prices and fresh fruit bunches (FFB) production. However its earnings per share were 4.88 sen compared with 5.09 sen previously.
The firm said that its 3Q15 FFB production at 77,600 tonnes was 12 percent higher compared with 3Q14. As most of the FFB produce was supplied to mills within the group, its plantation operations did not face problems in selling it. It added that 3Q15 revenue from its palm oil milling operations increased by 9 percent, achieving profit of RM13.8 million.
Significance: The group expects palm oil prices to remain stable at its current level for 4Q15 and its FY15 crude palm oil production quantity and FFB production by its plantation operations to be at least 15 percent and 10 percent higher respectively. Financial implications of the court case will also be reassessed when a full judgement is obtained.
Mah Sing To Focus On Mid-Range Segment
Mah Sing Group expects to continue with its strategy of targeting the mid-range market whereby 84 percent of its launches in 2015 will be priced below RM1 million. Strong overall demand is projected for mass market properties, reflected in the success of its launches in the mid-range, mass market projects.
Demand stems from first time home buyers, upgraders, new household formations and government incentives for first time home buyers under Budget 2015. Its projects in the mid-range market will also benefit from ongoing and proposed major infrastructure projects such as the Mass Rapid Transit, Light Rail Transit and extension together with the proposed High Speed Rail.
The group has also acquired landbanks in both Puchong and Seremban, to target the mass market and upgraders. In addition, it acquired part of the Sultan Salahuddin Abdul Aziz Shah Golf course in Shah Alam to cater to the high-end market in the medium-long term. These acquisitions have a collective potential gross development value of approximately RM19.3 billion.
Significance: Mah Sing has managed to deliver its various key performance indicators in terms of sales and financial performance, with RM2.5 billion of sales in 9M14, a 25 percent compounded annual growth rate in revenue and net profit over the last five years and a 15 percent return on equity on average.
http://www.sharesinv.com
