Bean's MONEY TV - stock pick

BSLCORP - Whats inside Mr Bean's Head?

BeanMoneyTV
Publish date: Sat, 26 Nov 2016, 05:21 PM
To be successful, u dont need a beautiful face nor heroic body, all u need is skillful mind and ability to perform well

BSL Corporation Berhad group (BSLCORP, 7721) is one of companies has evolved from a metal stamping company into a Total Manufacturing Solution Provider specializing in Electronic Manufacturing Services and Original Equipment Manufacturer. Preferred One Stop High –Value Strategic Partner offering contract manufacturing or additionally through licensing or even joint venture as a form of business all in one convenient location.

BSL Corp Sdn. Bhd

 

Fundamental Outlook
 
BSLCORP has posted consistent revenue in range of 20mil to 30mil for the past 3 years. For the quarter ended 31 August 2016, the Group achieved a revenue of RM26.16 million and profit after tax of RM5.29 million, compared to a revenue of RM24.88 million and profit after tax of RM0.09 million for the corresponding quarter last year.
 
 

 

Currency: Malaysian Ringgit (MYR)

SUMMARY OF KEY FINANCIAL INFORMATION
31 Aug 2016

 
INDIVIDUAL PERIOD
CUMULATIVE PERIOD
CURRENT YEAR QUARTER
PRECEDING YEAR
CORRESPONDING
QUARTER
CURRENT YEAR TO DATE
PRECEDING YEAR
CORRESPONDING
PERIOD
31 Aug 2016
31 Aug 2015
31 Aug 2016
31 Aug 2015
$$'000
$$'000
$$'000
$$'000
1 Revenue
26,155
24,882
108,262
98,076
2 Profit/(loss) before tax
5,269
823
5,183
-2,676
3 Profit/(loss) for the period
5,292
88
4,598
-3,528
4 Profit/(loss) attributable to ordinary equity holders of the parent
5,343
77
4,762
-3,568
5 Basic earnings/(loss) per share (Subunit)
5.52
0.08
4.92
-3.69
6 Proposed/Declared dividend per share (Subunit)
0.00
0.00
0.00
0.00
   
AS AT END OF CURRENT QUARTER
AS AT PRECEDING FINANCIAL YEAR END
7 Net assets per share attributable to ordinary equity holders of the parent ($$)
0.7700
0.6900

Definition of Subunit:

In a currency system, there is usually a main unit (base) and subunit that is a fraction amount of the main unit.
Example for the subunit as follows:
 

Country Base Unit Subunit
Malaysia Ringgit Sen
United States Dollar Cent
United Kingdom Pound Pence

 

[Better prospect ahead]

We realized that their strategy to evolve into Electronic Manufacturing Services (EMS) and Original Equipment Manufacture (OEM) is a brilliant move since the segment posted a splendid profit from last quarter. Eventhough the Precision stamping & tools segment drag down their profit with the widened loss due to additional expenses for new product development and R&D, but the EMS segment which is Printed Circuit Board (PCB) and module assembly has posted tremendous profit and cover up the loss from stamping & tools segment.

Do note that with the current weak Ringgit will furrther improve their sale in terms of revenue due to forex gain.

 

 

[Corporate Development]

We are cautiously optimistic that their PET aerosol project will get off the ground for next financial year. Several potential clients are finalizing their testing of solution and should be placing orders within this current financial year. In the meantime, they continue to invest in the patents associated with this product.

The EMS business model is expected to launch two new products, air purifier and hand dryer at the later part of financial year 2016. We hope that this project will enhance the opportunity for more EMS jobs in the near future.

In September 2015, they also entered into a joint venture partnership by setting up BSL Eco Energy Sdn. Bhd. with 51% equity interest. The targeted business areas are renewable energy such as solar, consultancy, construction of solar farms, etc. As part of our venture into solar, Crestronics recently received approval from relevant authorities to assemble solar inverters.

 

 

TECHNICAL OUTLOOK

 

    

 

It is observed that the MACD od BSLCORP is ponting upwards back and most of the indicator showing strong buy. We believe it will revisit the price of .36 and .39 respectively where it happen on last 28 October due to the splendid quarter report posted. The volume also is in convincing way as it increased showing that buying interest is back. While the flag pole just broken from last friday surged, we strongly believe more upside soon and it will revisit .39 as well.

 
 
 
CONCLUSION
 
What inside Mr Bean's brain for now is BSLCORP and I would say its Fair Value is 40sen & above
 
TP : 40sen and above

 

Related Stocks
Discussions
1 person likes this. Showing 7 of 7 comments

BeanMoneyTV

good luck all

2016-11-26 17:26

Karkhai

Thanks

2016-11-26 17:58

Kim

Flying drone =)

2016-11-26 18:05

Berkat

Thank you

2016-11-26 18:23

Kazmi73

Tq....

2016-11-26 19:02

wan7075

Thank you bean!

2016-11-27 09:32

Investhor

Fly

2016-11-28 06:05

Post a Comment