- KUALA LUMPUR: OSK Investment Research has maintain call on MUDAJAYA GROUP BHD at RM5.09 and raised its target price for the stock to RM7.33 (from RM6.48) after the company posted 1QFY10 earnings of RM51 million (+260% y-o-y, +23% q-o-q), which the research house said was above its own and consensus expectations.
It said Mudajaya remains its top pick in the sector and that it sees stronger showing in the subsequent quarters once Phase 2 gains further momentum.
"Forward prospects include India's UMPPs, LRT extension, domestic power plants, Saudi jobs and PFI projects. We raise our FY10-11 earnings by 13%-14%," it said.
On 11th Feb 2010, OSK wrote the following...
But if I compare with say CIMB, OSK valuation was rather low. :P
CIMB was already giving Mudajaya a TP of 7.52 back in Feb 2010.
Here's Mudajaya earnngs in Feb 2010. Quarterly rpt on consolidated results for the financial period ended 31/12/2009
It made a very impressive 41 million.
- Mudajaya 4Q net profit surges two-fold to RM41m
Written by The Edge Financial Daily
Wednesday, 10 February 2010 17:51
KUALA LUMPUR: MUDAJAYA GROUP BHD []'s fourth quarter net profit surged two-fold to RM41.05 million from RM10.36 million a year ago increased level of activities.
It said on Wednesday, Feb 10 that revenue rose 65% to RM211.76 million from RM128.22 million while earnings per share were 11.02 sen versus 1.50 sen. It declared 10% dividend per share or two sen per share.
For FY09, net profit surged to RM116.9 million from RM45.12 million while revenue rose to RM719.98 million from RM422.38 million. Of the RM719.98 million, CONSTRUCTION [] accounted for RM604 million.
"Barring any unforeseen circumstances, the financial performance of the group for 2010 is expected to improve further," it said
( ps: here is its Nov 2009 earnings: Quarterly rpt on consolidated results for the financial period ended 30/9/2009 - It made 'only' 35 million. And if you do a q-q-q quick comparison, this is not too shabby yes?)
Anyway, here is Mudajaya balance sheet taken from its previous quarter (ie from the earnings announced in Feb 2010. Link: here )
Mudajaya has no borrowings.
Here's Mudajaya balance sheet taken from its earnings reported last night.
How?
Do you see the wealth created? ( ERROR! Please see this: Errata Made On The Posting "What Do I Think Of Mudajaya's Earnings Performance..." )
Yes? No?
And the company's segmental explains where and why the company is doing well.
Again I asked how?
This company is not doing too shabby, yes? Compare to those other construction stocks, how?
Oh yeah.. this is a randomly dedicated posting, which means I cannot guarantee that you will lose money if you blindly follow and assume that this is a stock tipsy.
And just for the record, the stock is now trading at 5.11.
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IMPORTANT
Please read this: Errata Made On The Posting "What Do I Think Of Mudajaya's Earnings Performance..."
looks like the construction arm doing really well.. with more LRT projects in the pipeline
ReplyDeletebalance sheet looks good (for a construction company)
nice to see inventories and receivables are not up. cash pile up is a plus.
the companies better prospects are already reflected in the run up since dec 09
TTM earnings has the stock trading at 13X
still got room to go? yr guess is as good as mine
i guess this qualifies as "one of those smaller bumi firms" ? :P
ReplyDeletealthough at 2bil mkt cap its not exactly small
Hi Moola,
ReplyDeletethe cash increase could it be possible of the share placement?
below is the extract from their annoucement.
"The Company has on 6 January 2010 proposed for the placement of up to 10% of its issued and paid-up share capital (net of treasury shares) to investors to be identified ("Proposed Placement"). The Proposed Placement was approved by BMSB on 12 January 2010. On 28 January 2010, 37,238,500 ordinary shares of RM0.20 each was allotted to identified investors at RM4.80 per share and these shares were subsequently listed at BMSB on 29 January 2010.
The net cash proceeds of RM176.90 million arising from the Company's share placement of 37,238,500 ordinary shares of RM0.20 each will be utilized as follows: -"
Spot on Choong Wai!
ReplyDeleteCash did increased by som RM176.90 million raised from its share placement.