FAJARBARU BUILDER GRP BHD

FAJARBARU BUILDER GROUP BHD (FAJAR - 7047)  - The Group is a vertically-integrated construction set-up, which is well-positioned as a “One Stop Agency” which is capable of undertaking a wide range of projects as it possesses the expertise for ground works/piling works, infrastructure works, substructure/super-structure works and finishing works, with in-house design and build capabilitieS.

- The construction player, who diversified into the property sector last year, intends to undertake three residential development projects in the country with a projected total gross development value (GDV) of RM728 milllion.

- Its current unbilled order book stands at RM450 million, which will keep the group busy for at least the next two years

FINANCIAL OUTLOOK

Date		Financial Result				Financial Ratio		Per Share Item			Performance
Ann. Date	Quarter	Revenue	PBT	NP	NP to SH	NP Margin	ROE	EPS	DPS	NAPS	QoQ	YoY
Financial Year: 30-Jun-2017
24-Nov-2016	30-Sep-2016	63,063	10,814	7,929	4,389	12.57%	1.88%	1.21	0.00	0.6436	289.06%	57.14%

For the current quarter ended 30 September 2016, the Group registered a lower revenue of RM63.1 million and a higher pre-tax profit of RM10.8 million as compared to a revenue of RM104.1 million and pre-tax profit of RM4.9 million in the preceding quarter ended 30 June 2016. The decreased in revenue was mainly due to lower activities in the construction segment during the current quarter under review as compared to the preceding quarter. The lower activities in the construction segment was due to most of the projects are at the ending stage while the newly awarded project was still at the preliminary stage. Despite of lower revenue, the Group recorded a higher pre-tax profit in the current quarter due to the provision of additional costs on the completed projects in the preceding quarter.

FUTURE PROSPECT AND ONGOING PROSPECT

- The construction player, with a market cap of RM139.77mil, plans to launch three projects in the Klang Valley and Malacca by the end of 2016. These include a condominium project in Puchong with a GDV of RM400mil, a serviced apartment project in Sentul with a GDV of RM250mil and serviced apartments in Malacca with a GDV of RM78mil. 

- The Group will focus on the replenishment of its current order book and will continue to actively tender for local construction projects. As for its property segment, the Group is proud to announce that its maiden project, the GardenHill, Melbourne, Australia, has reached about 84% sales and construction works are on schedule for completion at the end of the year.

- Fajarbaru Builder Group is targeting a firm double-digit growth in its earnings and revenue starting from the financial year ending June 30, 2017 (FY17), driven by upcoming property launches and strong unbilled order book from its construction segment.

- Fajarbaru Builder Group Bhd’s unit, Fajarbaru Builder Sdn Bhd, has secured a RM259.7mil contract from the Transport Ministry for the rehabilitation of railway track formation.

TECHNICAL OUTLOOK

FAJAR

FAJAR WB

- BOTH MOTHER SHARE AND ITS WARRANT HAD SUCCESSFUL BREAKOUT FROM LAST FRIDAY TRADING.

- THIS BREAKOUT ACCOMOANNIED BY HIGHER AVERAGE TRADE VOLUME WHICH TENDENCY FROM TRADER TO PUSH THE PRICE HIGHER HENCE GIVING HIGH PROBABILTY OF SUCCESSFUL BREAKOUT.

- MACD ALSO RE-POINTING UPWARD AND ALL SIGNAL SHOWING GOOD SIGN AND BULLISH

DIVIDEND PLAY

CONCLUSION

- WITH THE UPCOMING DIVIDEND AND SUCCESFUL BREAKOUT FROM LAST SURGE, WE STRONGLY BELIEVE MORE UPSIDE FOR THIS COMING WEEK.

SHORT TERM TP FOR FAJAR : 0.61

SHORT TERM TP FOR FAJAR WB : 0.19

*TRADE AT YOUR OWN RISK