Eksons
Posted: Fri Nov 20, 2015 9:31 amnot 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
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