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Weida: Disappointing FY14Q2 - Bursa D

Tan KW
Publish date: Wed, 27 Nov 2013, 10:57 PM
Tan KW
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Wednesday, 27 November 2013

 
Weida FY14Q2 Financial Result
 
WEIDA FY14Q2 FY14Q1 FY13Q4 FY13Q3 FY13Q2 FY13Q1
Revenue 71.3 88.0 96.9 98.6 111.0 72.3
PBT 1.9 14.0 3.3 13.7 9.2 3.1
PBT% 2.7 15.9 3.4 13.9 8.3 4.3
PAT 0.3 9.9 55.0 8.9 6.2 1.7
             
Manu Rev 38.2 54.2 42.5 53.9 56.2 42.3
Manu Profit 5.7 7.1 2.8 10.2 4.8 5.3
Work Rev 27.6 28.8 58.3 39.3 44.8 29.3
Work Profit 0.2 6.7 3.8 4.8 2.8 2.4
Service Rev 5.5 5.0 4.7 5.5 9.4 8.3
Service Profit -0.2 0.5 -0.2 0.2 0.5 0.7
Prop Rev 0.0          
Prop Profit -3.5          
             
Total Equity 348.5 353.3 347.6 216.7 207.7 205.2
Total Assets 632.0 652.4 603.3 576.4 546.4 580.4
T/Receivables 100.2 120.5 149.3 183.8 144.4 153.0
Inventories 53.1 46.5 46.2 42.8 42.3 46.2
Cash 229.4 259.0 263.5 63.1 65.9 87.9
P/ Dev Cost 4.0          
             
Total Liab 272.7 285.3 242.1 329.7 310.9 347.6
T/Payables 97.8 101.7 95.6 102.7 98.8 102.7
ST Borrow 79.4 67.6 59.1 73.5 70.4 96.5
LT Borrow 79.4 105.0 76.0 85.0 119.7 131.6
             
Net CF -63.4 -34.1 209.2 11.1 13.2 35.3
Operation -22.8 -5.3 97.3 15.5 33.3 11.1
Investment 1.7 -0.6 133.5 -7.1 -9.9 -4.9
Financing -42.3 -28.2 -21.6 2.8 -10.1 29.2
             
EPS 0.27 7.81 43.53 7.03 4.92 1.79
NAS 2.75 2.78 2.74 1.71 1.64 1.62
 
 
After posting an impressive FY14Q1 result 3 months ago, Weida's current FY14Q2 result is terrible. Its revenue drops 19% QoQ from RM88.0mil to RM71.3mil, while net profit drops 97% from RM9.9mil to just RM0.3mil.
 
Weida's manufacturing segment suffers significant drop in revenue and profit due to lower demand in this quarter. While the revenue from work segment remain flat, its PBT drops substantially due to one-off construction cost in this quarter and lower contribution from telecommunication towers. Its service segment suffers minor loss due to disposal loss of RM0.8mil in the quarter. 
 
Weida's property segment has just taken off with its maiden project Urbana Residences (GDV RM231mil) launched in early Oct. It may start to contribute to the group's profit next quarter. I estimate this project may give an average of RM10-12mil net profit every year to Weida for the next 3 years.
 
       Urbana Residences
 
Overall this quarter's results is disappointing, especially its core manufacturing segment. If the growth in manufacturing does not increase or sustain, then investing in Weida will be less exciting although it has just ventured into property and has good prospect in telecommunication tower business in Sabah.
 
Many people overlook Weida as a potential beneficiary in the RM1.5bil telecommunication towers projects in East Malaysia announced in Budget 2014, as Weida has a strong presence in Sabah.
 
I will keep Weida in my stock watch list, but most probably will not put money in it until subsequent quarter's results, as history suggests that its revenue & profits tend to fluctuate a lot.
 

 

Discussions
1 person likes this. Showing 1 of 1 comments

weida

Quite a good write up but u forgot to mention their substantial increase in cash position after cashing out on their plantation land investment recently (FY13Q4)leading to an extraordinary gain of RM120+ million. Their cash reserve went up by RM200m i.e. from RM63m to RM263m which is a cash equivalent of about RM2.10 per share.

2013-11-29 14:14

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