Tuesday, August 28, 2007

Crest Builder 2007

CrestBuilder announced its earnings last night. Quarterly rpt on consolidated results for the financial period ended 30/6/2007

Crest Builder Holdings Bhd (8591.KU) - Malaysia
2nd quarter ended June 30:
Figures are in Ringgit (MYR).

2007 2006
Revenue MYR90,241,000 MYR54,119,000
Pretax Profit 11,517,000 6,590,000
Net Profit 8,057,000 3,695,000
Earnings Per Share 6.50 Sen 4.80 Sen
Dividend Omitted Omitted

6 months ended June 30:

Revenue 171,285,000 113,017,000
Pretax Profit 23,275,000 15,248,000
Net Profit 15,797,000 9,322,000
Earnings Per Share 12.80 Sen 7.70 Sen
Dividend Omitted Omitted

Current half year fy 2007 earnings totals some 15.797 million. Not bad.

Back in November 2005, I first blogged on Crest Builder, Ze Numbers Game!

My grouse was that the OSK writer was simply way too optmistic.

  • 15.5 -> 16.2 -> 26.7 -> 41.3 -> 50.7million.

The purple fonts represented its incredible earnings projections. Point was, Crest Builder was touted and promoted to the investing community based on that 41.3 million earnings projections. (Here's an incredible footnote. Despite Crest Builder decent performance, Crest Builder earnings at this moment of time still could not reach that 41.3 million!)

And then my second posting was Ze Numbers Game: II, posted on Aug 21st 2006. Earnings looked decent but it's performance was simply no way close to what OSK had touted. (ps. did you see that OSK had a whopping TP of rm 2.59 then? LOL! Yes rm2.59! And the highest Crest Builder ever did was high of over 1.45 back in July 2007!)

Nov 2006. Crest Builder Again

The biggest thing besides the bragging from the writer was the bare facts.

net profit
fy 2003 17.5 million
fy 2004 16.3 million
fy 2005 12.2 million

Those were the numbers Crest Builder had recorded. And as can be seen. Crest Builder was doing rather poorly since fy 2003. Yes?And how much did OSK forecast CB's fy 2006 earnings? 32.9 million!

So how did Crest Builder do for its fy 2006? An earnings of 20.679 million. ( Quarterly rpt on consolidated results for the financial period ended 31/12/2006 )

( Other postings: Regarding Crest Builder Again , Crest Builder - Fulfilling What Prophesies??, Crest Builder's Home Run? , More Disposal of Shares Seen in Crest Builder )

Btw, here is the link to Crest Builders earnings in May 2007. Quarterly rpt on consolidated results for the financial period ended 31/3/2007

Now back to Crest Builder itself.

So how has Crest Builder been doing?

Firstly, earnings aside, as a business investor, I would like to see how Crest Builder has manage its balance sheet all these years. And here is a simple exercise one can do. Take the quarterly earnings posted yesterday ( See Quarterly rpt on consolidated results for the financial period ended 30/6/2007 ) and compare their balance sheet now versus its balance sheet say 2 years ago.

Point of argument for such exercise is simple.

If the company (Crest Builder) is doing well, then one should see some wealth generation in its balance sheet, right?

As of the earnings reported last night, Crest Builder had some 28.837 million in its piggy bank, trade receivables 100.788 million, total loans 153.567 million (a net debt of 124.680 million!). Half year net earnings is 15.797 million.

Two years ago, same period (Quarterly rpt on consolidated results for the financial period ended 30/6/2005 ) Crest Builder had some 24.788 million its piggy bank, trade receivables 52.242 million, total loans 105.146 million (a net debt of 80.358 million). Half year net earnings then was 8.048 million.

Compare both set of simple yardsticks.

Yes, earnings has doubled but does one see Crest Builder progressing and generating wealth as a company?