PJ
Development just released its 3rd quarter result yesterday. There are
some stuff I wished to record down here for reference in case I forget
in future.
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| ~ Income Statement ~ |
Overall,
the group posted a slightly better result compared to corresponding
quarter last year at PBT level. But the group recorded a much higher
effective tax rate this quarter due to losses in
certain subsidiaries that are not available to set-off against taxable
profits in other subsidiaries within the Group as mentioned in the
statement. Thus, a lower net profit.
In
terms of diluted EPS, the 10% increased in adjusted weighted average
number of ordinary shares compared to corresponding quarter last year
didn't help much neither.
In
terms of balance sheet, there is nothing more special than the great
increase in the land held for property development. This was probably
due to the shares subscription of Yarra that took place in Jan and Feb
respectively to fund the acquisition
of a freehold land located in Victoria, Australia.
As
a result, it's not hard to see a big jump in the group's total
borrowings too. If look at the breakdown of the borrowings, the
increases in borrowings were mostly denominated in Australia Dollar. So,
probably used it to fund the Yarra's development.
In terms of cash flow, the increases in land held and development costs caused its net operating cash flow in negative number.
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| ~ Segment Reporting ~ |
If compared to Q2FY15, the reason the group's performance dropped was obviously seen at segment reporting.
Both
Construction and Hotel segments contributed to the poorer performance.
Revenue recognition for Properties and Construction segment normally
based on POC method in Malaysia. Thus, it should not be a problem as
long as the property sales are good and there is no delay in executing
the contract. It's just matter of when the revenue would be recognized
based on the cost incurred up to date.
Hotel
segment is a concern as the management did not state the reason why the
segment recorded a loss in this quarter. Not sure whether it's due to
startup cost incurred for the upcoming new D'Majestic and Swiss-Inn or
not.
Cable division was not doing quite well with its profit margin dropping compared to last year.
Good
thing is the Building Material segment continue to show good
performance compared to last year. The Acotec wall panel probably
continue to gain acceptance by the industry players.
So, that's.
No
unbill sales was given in the quarter report. But probably still good
and the management mentioned the response of the new launch of Genting
Windmill was good.
We still have to wait for few months before the corporate exchange between OSK and PJ Dev to take place.
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