CAELY – DIVERSIFIED BRINGS BRIGHT FUTURE.

 

       

CAELY – DIVERSIFIED BRINGS BRIGHT FUTURE.

Caely Holdings Bhd (CAELY, 7154), engages in the manufacture and sale of undergarments under original equipment manufacturer (OEM) arrangement to Europe, Canada, the United States, and other Asian countries. The company also manufactures and sells undergarments under its own brand in Malaysia. In addition, it is involved in the multi-level marketing of undergarments, garments, leather goods, sportswear, and household goods; retail of undergarments and garments; and trade of related raw materials.

In year 2011, the company diversified its business and start to engage in the property development and construction activities. This new segment brings profit to the company and changes its destiny.

For the financial year ended 31 March 2012, the Group has achieved total revenue of RM68.7 million, an increase of RM11.6 million or 20% from RM57.1 million as compared to last financial year ended 31 March 2011. In line with the increase in revenue, the Group posted a profit after tax of RM1.2 million as compared to an after tax loss of RM10.3 million for the same period.  

For the financial year ended 31 March 2013, the group achieved total revenue of RM91.5 million, an increase of RM22.8 million or 33% from RM68.7 million as compared to last financial year ended 31 March 2012. The increase was mainly due to the construction and OEM segments which contributed additional revenue of RM10.5 and RM12.8 million respectively.

	2011	2012	2013
Revenue (RM) million	57.1	68.7	91.5
Change	-	+20%	+33%
Profit After Tax (RM) million	(10.3)	1.2	1.7

There were few years CAELY did not declare dividend, but this year the BOD recommends a proposed single tier final dividend of 1 sen in respect of the financial year ended 31 March 2014. The entitlement and payment dates would be announced at a later date and subject to the approval of the shareholders at the Company's forthcoming Annual General Meeting.

Let’s have a quick look of CAELY’s share price,

Current share price: RM0.55

NTA: RM0.92

P/E: 6.3

EPS: 8.73*

Dividend: RM0.01 (financial year ended 31 March 2014)

* Calculated based on the net profit of the trailing twelve months and latest number of shares issued.

CAELY’s Property Development and Construction Projects:

1)      Mukim Batang Padang, Tapah (27/6/2011)

Development of a parcel of vacant leasehold land measuring approximately 52.79 acres in Mukim Batang Padang, which is located along Tapah Road, Perak. The estimated total GDV is RM145 million, and the estimated profit before interest and tax is RM10.5 million. Estimate complete within 36 months.

The project consists of:

                ·         181 shop lots     

                ·         304 linked, semi-detached and bungalow

                ·         2 parcels vacant lots (1 acres each)

2)      FELCRA PROJECT (7/9/2012)

Award turnkey project for 300 unit Rumah Sesebuah Fasa 1 serta kerja-kerja  berkaitan di Projek Kampung Tersusun Generasi Kedua Felcra Berhad Seberang Perak, Changkat Lada, Mukim Pasir Salak, Perak

The Contract period will be for 2 years. The value of the Contract is for a total contract sum of RM 47,936,716.50

3)      GOMBAK PROJECT (22/7/2013)

JV with Kismajaya Sdn Bhd to develop an abandoned project 7.09 acres land for 3 blocks of high rise condo (Block A, B and C). The estimated land area for Block B and C is 2.53 acres and 2.08 acres respectively. CAELY intends to complete the abandoned Block B, which comprise an 8-storey 120 residential condominium units. Estimate complete within 36 months.  

•   Block A had completed by previous developer.
•   Block B (2.53 acres), estimate GDV RM 49.8 million at cost RM 38.2 million (earn RM 11.6 million)
•   Block C reserve for future development (2.08 acres).

4)      FELCRA PROJECT (4/12/2013)

Award two construction contracts from Koperasi Peserta-Peserta Felcra Malaysia Berhad.

i)                   To design, construct and complete additional 770 units of houses in connection with Projek Perumahan Kampung Tersusun Generasi Kedua Felcra Berhad Seberang Perak, Changkat Lada, Mukim Pasir Salak, Perak for the contract sum of RM69,041,690.

ii)                  To construct and complete the infrastructure  of the Projek Perumahan Kampong Tersusun Generasi Kedua Felcra Berhad Seberang Perak, Changkat Lada, Mukim Pasir Salak, Perak for the contract sum of RM28,214,561

The Contracts are to be complete within a period of 24 months from the date of the contract, with the sum of RM97.2 million.

CAELY’s property development and construction projects in hand are estimated has a total GDV over RM300 million. In year 2013, the net profit margin is 25% for property development and construction segment. 

Diversified into property development and construction segment brings a bright future for CAELY. Its share price (CAELY, 7154) is around RM0.29 a year ago, and now around RM0.52 which is still a discount price compare to its NTA of RM0.92 with a low P/E ratio 6.3

Happy trading

AsianBuffett

EITA RESOURCES BERHAD (EITA, 5208), DREAM BIG, GO BIG.

 

EITA – DREAM BIG, GO BIG.

Listed in April 2012, EITA’s share price has more than doubled from its IPO of 76 cent a year ago to its closing of RM1.54 at July 11, giving it a market capitalisation of RM200.2 million.

EITA Resources Berhad (EITA, 5208), From the humble beginning in the late 1996’s, EITA has grown to be a leading supplier to electrical contractors, switchboard fabricators and OEM (Original Equipment Manufacturer) and manufacturer of Elevaotor Systems and Busduct Systems in Malaysia. Today, the Company has expanded its business operations to other Asian countries. EITA have the capabilities to design and manufacture their elevators and busduct systems and also a range of Electrical and Electronic components and equipment under its own brand names.

Over the years, EITA has built up a high level of trust among their customers. The Group principal suppliers and technology partners are from some of the most respected names in the world. Quality products and excellent after-sales service have earned EITA the appreciation of our fast-growing clientele. EITA in-house R & D is a priority within EITA group, where new technology and improved production processes are continually improved and tested to create products of internationally accepted quality. With dedication to customer support, development of innovative solutions and creation of new products and services, EITA is well poised for a greater participation in the nation’s progress for years to come.

Current Share Price: RM1.46

Dividend: RM0.03

EITA AMONG WINNERS OF MRT CORP’S RM67M WORTH OF CONTRACTS

EITA Resources Bhd’s unit EITA Elevator (M) Sdn Bhd has won a RM15.3 million contract from Mass Rapid Transit Corp Sdn Bhd (MRT). The contract for the Klang Valley’s Sungai Buloh- Kajang line involves the supply, procurement, installation, testing and commissioning of the lift system for all MRT underground stations and ancillary buildings (Package LS-U).

EITA DREAMS BIG, MULLS OVER ACQUISITIONS

The big dreams, EITA hopes to report RM1 billion in revenue by 2020. The group MD Fu Wing Hoong says EITA is moving towards that goal by growing contributions from its overseas sales from 20% currently to 50% and revenue from its in-house branded products (manufacturing division) from 50% to 70%. EITA manufacturing division (in-house brand) is grow faster than their marketing division (third-party brands). Fu says the group has to go beyond the shores of Malaysia and be on the lookout for merger and acquisition (M&A) opportunities in order to achieve its RM1billion goal.

FINANCIAL HIGHLIGHT

EITA’s group revenue was RM142.1 million and net profit was RM11.7 million for the nine-month financial period ended Sept 30, 2013 (FY2013). As at FY2013, EITA’s revenue had seen a three-year compound average growth rate (CAGR) of 5%. As at March 31 this year, the group had RM21.1 million net cash. For the six months ended March 31, 2014 (6M14), EITA’s net profit was RM5.5 million on RM97.8 million revenue. EITA’s dividend of RM0.03 paid at April 28, 2014.

Listed in April 2012, EITA’s share price has more than doubled from its IPO of 76 cent a year ago to its closing of RM1.56 at July 22, giving it a market capitalisation of RM202.8 million.

As a whole, one of the EITA’s key substantial shareholders is owned by QL Resources Berhad (QL, 7084)’s Chia family.

EITA has secured some sales in Indonesia for its busduct products and expect to sell Pyrotech there. Growth prospects in Indonesia and Middle East will be the key immediate focus. It has also installed elevator systems in Singapore, Laos, Vietnam, Philippines, Hong Kong and Saudi Arabia.

Currently, the elevator projects under its portfolio include The Shore in Melaka, Gleneagles Hospital in Johor Bahru, Viva City Mall in Kuching, Al Jouf University in Saudi Arabia, and Movenpick White Sand Beach Resort in Thailand. As at March 31, the elevator division had an order book of RM135 million.  

Happy Trading

Asianbuffett                                                           

                               

BINA DARULAMAN BERHAD (BDB  6173) is the only public-listed government-linked company in Kedah which has been listed on the Main Board Bursa Malaysia in February 2, 1996. BDB is 55% owned by Perbadanan Kemajuan Negeri Kedah (the State investment board), while the balance is public shareholding. Its core businesses are township and property development, engineering and construction, road building and quarry, and tourism and hospitality.

For the financial year 2013, the Group posted a net profit of RM21.1 million on the back of annual revenue of RM281.0 million. Its net tangible assets per share rose to RM3.64 from RM3.42 in 2012, while shareholders’ funds increased to RM 265.2 million from RM 249.2 million a year ago. 

Over the same period, property development contributed 37% to its total revenue, followed by roads and quarry at 36%, construction at 24%, while golf and hotel recorded 2% and investment holding at one percent.

Let's have a quick look at Bina Darulaman (BDB 6173) share price. It hit the 52 week high few days ago at RM2.34; will it continuous to boost up? Will it challenging new high after another high? Will it another rising star? 

Current share price: RM2.32

NTA: RM3.71

P/E: 8.73

EPS: 26.57*

Dividend: RM0.07

* Calculated based on the net profit of the trailing twelve months and latest number of shares issued.

Based on the chart above, we can see that Bina Darulaman (BDB 6173) currently trade at a discount price of RM2.32 compare to its NTA of RM3.71, BDB declare a dividend per share of 7sen as compensation to its shareholders every year.

So, now we are going to discuss the company recent activities.

1)      ACQUIRES 485HA IN KEDAH

Bina Darulaman announce that the Company had, on 13 July 2014, entered into a HOA with PKNK, in which BDB and PKNK have agreed to negotiate and reach an agreement with regard to the acquisition of several parcels of lands owned by PKNK measuring approximately 1200 acres (485 hectares) in aggregate, and in consequence thereto, to finalise the sale and purchase agreement of the lands. The total purchase consideration for the proposed acquisition is estimated to be approximately at RM204 million.

The proposed land acquisition comprises three (3) parcels of leasehold land in Langkawi; a parcel of freehold land in Kubang Pasu; five (5) parcels of freehold land in Kuala Muda; two (2) parcels of freehold lands in Pokok Sena; and ten (10) parcels of freehold land in Kulim.

Based on the acquisition, Bina Darulaman (BDB) is strengthening its property activities in Kedah and set to increase its total landbank in the state to about 2700 acres (1,092ha). Property development, which has been a major contributor to the Group’s revenue and earnings in the past, is expected to remain bullish with the latest proposed land acquisition.

BDB group MD Datuk Izham Yusof said the acquisition was in line with its plans to increase its landbank in Kedah as property development was a major contributor to group revenue and earnings. Izham said the focus would be on residential projects.

2)      PROPOSED PAVEMENT WORK FOR THE ROAD        PROJECT (Pekan Sg. Petani – Pekan Tawar)

Its wholly owned subsidiary; BINA & KUARI (K) SDN BHD (BinaKuari) had received a Letter of Acceptance dated 22nd May 2014 from IBRA HS SDN BHD (IBRA) for the purpose of pavement work for federal road works (Laluan 67) from Pekan Sg. Petani, District of Kuala Muda to Pekan Tawar, District of Baling, 14.1 (Package 1) –from Persimpangan Lencongan Timur ke Persimpangan Laluan (K620), Kedah subject to the terms and conditions as stipulated in the Letter of Acceptance.The LA was duly accepted by BinaKuari on 7th July 2014 and endorsed by Board of Directors on the same day.

         

           Information of the project:

i)     The Sub-Contract amount is RM9,450,000.00.

ii)    The Project shall be for 12 months from the date of site possession to 28th May 2015.

Financial effect:

The Project is expected to contribute positively to the Group earnings for the financial years ending 2014 and 2015.

3)      EYES NEW OPPORTUNITIES WITH KL OFFICE          OPENING

      BDB eyeing new opportunities to ensure its sustainable growth and future expansion with the opening of an office in the capital city.Its Group Managing Director, Datuk Izham Yusoff, said the opening of the new KL office was to heighten awareness of the Group’s existence, capabilities and exploring untapped business opportunities at the national level.He said this at the official opening of the new 6,000 sq. ft BDB Kuala Lumpur office located at Wisma Glomac in Damansara Utama, which was officiated by Chief Minister of Kedah, Datuk Seri Mukhriz Tun Mahathir.

Izham added that with BDB’s expansion outside Kedah, it would enable the Group to be exposed to a larger pool of opportunities in which it has a strong and established track record in township and property development, engineering and construction, road works and quarrying, as well as tourism and hospitality. With the establishment of the Group’s office in Kuala Lumpur, Izham expressed optimism of positive growth as plans are in the pipeline to jointly explore and undertake several projects where the Group has a wealth of experience, expertise and resources. More importantly, like all businesses, we have to be constantly on the lookout for new opportunities by leveraging on our strengths and to explore prospects for sustainable growth as well as the creation and enhancement of shareholders’ values,” he explained.

4)      SALE OF PROPERTIES.

More of more, BDB recent proposed activities will improve the earnings of the Company for the financial year ending 31 December 2014 and financial year 2015;

i)      Sale of a piece of leasehold land in Bandar Alor Setar for RM3.8 million.

ii)     “en bloc ” sale of 323 units double storey terrace houses situated at Taman Insaniah to PRIMA. The proposed “en bloc” sale is expected to contribute positively to the Group earnings for the financial years ending 2014 and 2015.

If you looking for the under value stock to invest, you may look at this rising star Bina Darulaman (BDB 6173) since its price still very cheap compare to its NTA of RM3.71 with P/E ratio 8.73

Target Price: RM2.60           

Happy trading 

AsianBuffett