Ekson

Ekson

Postby winston » Fri Nov 20, 2015 9:31 am

not vested

Feb 26, 2015

Property boost in 3QFY15

At 111% of our FY15 core net profit, Eksons's annualised 9MFY15 core net profit is in-line with our expectations as we do not expect the strong property earnings in 3Q to be sustainable in 4Q, while plywood prices remain weak.

We maintain our EPS forecasts and target price, based on an unchanged 20% discount to adjusted SOP/share; the SOP discount reflects its small market capitalisation and tight trading liquidity.

The stock remains a Hold. We advise switching to Prestariang for exposure to the small-cap sector.


Cash-rich balance sheet

The company’s balance sheet is strong, with net cash of RM121m or RM0.74net cash per share as at end-Dec. This is equivalent to 52% of its share price.

The huge cash pile came about after the company sold its commercial land at its “The Atmosphere” project for RM140m cash. Unfortunately, we believe the company is not planning a special dividend but has instead indicated that it may use the cash to expand its property landbank around the Klang Valley. In 2015, the company is looking to launch a RM100m GDV residential development project in Bukit Serdang.

Source: CIMB

https://brokingrfs.cimb.com/a1aqHtL2KwO ... sTq_Y1.pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: Ekson

Postby winston » Fri Nov 20, 2015 9:32 am

Backed by cash

At only 29% of our FY15 core net profit, Eksons's annualised 1HFY15 core net profit was below our expectation mainly due to weak plywood prices.

But 1H15 net profit rose 230% due to EI gain from “The Atmosphere” land sale.

We raise our FY15 EPS forecast to reflect the EI gain but cut FY16/17 EPS for the weak plywood price outlook.

Our target price, based on an unchanged 20% discount to adjusted SOP/share, falls to RM1.50.

The SOP discount reflects its small market capitalisation and tight trading liquidity.

The stock remains a Hold. We advise switching to MyEG for exposure to the small-cap sector.

Source: CIMB

https://brokingrfs.cimb.com/UN3EUsrmCRc ... ZQ4xc1.pdf
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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