Kim Lun - Better Margin Promising Prospect? (3) - YiStock

Author: YiStock   |   Publish date: Thu, 2 Jun 2016, 01:33 PM 

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Kim Lun has released it Q1 2016 report. I'm glad that the Margin continue to expand for both Construction & Manufacturing segment.
Kim Lun is on track MOVING UP THE VALUE CHAIN!
A quick look on the construction sector with operating margin exceeded 10% (vs 6.6% in 2015 Q1) and manufacturing closed to 39% (vs 24% in 2015 Q1).
Kim lun has exposure to SGD mostly on the precast concrete segment, therefore it has  UNREALIZED loss of RM 3.2 million recorded in Q1 2016. Because it is unrealized, so i included into the calculation to derive the core net profit. The sum is expected to be reversible in Q2 2016 as 1 SGD has touched RM 3.00 again yesterday )
Both y-o-y and q-o-q has recorded growth in dollar value and in margin!
With close to RM 1,820 mil contract in hand, the earning visibility is clear!
With that sum of order book, i suppose they have lesser pressure and should be able to selectively bid for higher margin contract. 
Plus, as front runner in IBS system, Kim Lun should have all the advantage against peers.