gob

Icon8888) Global Oriental Bhd (Part 9) - Earning Has Gone Ballistic

Author: Icon8888   |   Publish date: Wed, 28 May 20:05

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1. Sterling Results

GOB reported net profit of RM18.9 mil in the latest quarter, representing EPS of 8.32 sen.

The latest quarter net profit is almost 120% than that of previous quarter. Entirely operating profit, no exceptional item.

	Q1	Q2	Q3	Q4
(RM mil)	June 2013	Sept 2013	Dec 2013	Mar 2014	Total
Revenue	74.2	86.6	98.2	93.2	352.2
Net profit	3.2	7.7	8.6	18.9	38.4
Net margin (%)	4.3	8.9	8.8	20.3	10.9
EPS (Sen)	1.4	3.4	3.8	8.3	16.9

For the full year ended 31 March 2014, the group reported net profit of 38.4 mil, or EPS of 16.9 sen.

Based on latest closing price of RM1.04, historical PE multiple is 6.2 times.



According to the Company, "The improved performance was mainly driven by higher revenue recognition and profit contribution from on-going projects in Seri kembangan, namely EQuator, Villa Heights and Springville".


2. Ongoing Projects

The following are projects currently being undertaken by the Group :-


(Villa Heights. Taman Equine)


(EQuator shop office, Taman Equine. Closed to completion)


(Galleria)


(Springville)


(Da:Men)

(Soon to be launched)


(GOB Lembaga Getah Asli JV)


3. Concluding Remarks

GOB delivered a pleasant surprise.

In one of my earlier article, I mentioned that I would be happy if they are able to grow their net profit from RM30 mil (existing) to RM60 mil in three years' time.

However, in latest quarter alone, the group reported net profit of RM19 mil. Annualised figure would be RM76 mil.

In addition, it seemed that the latest set of impressive result has not factored in any major contribution by Da:Men's condominiums / service suites component (with estimated GDV of RM500 mil and according to annual report, is target to be completed by end 2015).

It is too early to declare victory. We have to wait for another quarter's result to see whether the positive momentum can be maintained.

Having said so, I am cautiously optimistic. The principal reason is that the Company is in the process of undertaking a rights issue. Based on my experience, companies that make cash call usually will make sure the results are good so as to entice minority shareholders to participate.

Have a nice evening.