Review Of Fajarbaru's Earnings

Fajarbaru reported its earnings last night. This posting is an update to the following two postings.

1. A Quick Look At Fajarbaru Builder
2. Fajarbaru Venturing More Into Property Development

Here's the updated table.

At first glance the earnings looked to good. :P

From the company's earning notes.

• The Group registered a profit before tax of RM13.735 million for the current quarter as compared to the preceding quarter profit before tax of RM7.687 million. The profit recorded in the current quarter was contributed from construction activities and recovery of bad debts of RM 2.7 million.

Since such earnings is a one off, it's best that one takes note of this development.

For the fiscal year, the company has announced that it will distribute one treasury share for every twenty existing shares.

Regarding the huge cash balances of 124 million. In the posting Fajarbaru Venturing More Into Property Development, one have to note that purchases have not been completed yet. As stated in Fajarbaru's earnings notes.

• On 31 May 2010, FBGB announced that the Company had on 27 May 2010 entered into a Sale Shares Agreement ("the Agreement") with Ahmad Bin Patong, Abdulla Hamid Bin Manap and Rahadian Mahmud Bin Mohammad Khalil (“the Vendors) to acquire 100,000 ordinary shares of RM1.00 each representing 100% the issued and paid-up capital of Temasek Perkasa Sdn. Bhd. for a total consideration of RM15,000,000.00. The acquisition is expected to be completed within 6 months from the date of agreement
• The Company had on 12 July 2010 entered into a Share Sale Agreement ("the Agreement") with the following parties Dato’ Chua Tiong Moon, Mary Tan @ Tan Hui Ngoh, Koh Koo Kee @ Koh Ah Fook (“the Vendors) to acquire 348,255 ordinary shares of RM1.00 each representing 49.75% the issued and paid-up capital of Potential Region Sdn. Bhd. (Company No. 229098-H) (“PRSB”) for a total consideration of RM16,000,000.00. The acquisition is expected to be completed within four months from the date of purchase