It is indeed very hard for me to interpret Tropicana's financial result, as there are always a lot of fair value gains.
The figures and information here are not guaranteed to be correct.
The figures and information here are not guaranteed to be correct.
Tropicana FY13Q4 Financial Results
| TROPICANA | FY13Q4 | FY13Q3 | FY13Q2 | FY13Q1 | FY12Q4 |
| Revenue | 444.7 | 363.4 | 362.1 | 305.3 | 234.1 |
| Gross Profit | 203.4 | 130.2 | 117.7 | 130.7 | 98.1 |
| Other Income | 181.4 | 9.0 | 14.6 | 1.9 | 33.5 |
| Finance Cost | 18.2 | 27.7 | 15.6 | 16.5 | 13.9 |
| PBT | 325.2 | 49.3 | 62.3 | 66.8 | 60.8 |
| PBT-FV | 117.9 | 49.3 | 50.2 | 67.7 | 55.0 |
| PBT-FV% | 26.5 | 13.6 | 17.2 | 21.9 | 26.0 |
| PAT | 256.5 | 23.7 | 38.3 | 43.8 | 60.2 |
| Prop Dev Rev | 363.4 | 269.2 | 312.4 | 270.1 | 210.6 |
| Prop Dev PBT | 120.2 | 31.3 | 45.6 | 64.2 | 32.9 |
| Prop Inv Rev | 36.6 | 36.8 | 33.9 | 35.1 | 21.7 |
| Prop Inv PBT+FV | 105.0 | 19.9 | 25.5 | 14.0 | 25.0 |
| Prop Inv PBT-FV | 12.2 | 19.8 | 13.4 | 14.9 | 14.1 |
| Inv Rev | 44.7 | 57.5 | 15.8 | 0.0 | 1.8 |
| Inv PBT+FV | 99.9 | -1.8 | -8.8 | -11.4 | 2.9 |
| Inv PBT-FV | -14.4 | ||||
| Total Equity | 2570.3 | 2345.5 | 2336.7 | 2174.5 | 2061.1 |
| Total Assets | 5425.7 | 5045.4 | 4990.5 | 4667.1 | 4518.4 |
| Trade Receivables | 383.3 | 236.0 | 214.9 | 101.2 | 103.5 |
| Prop dev cost | 554.3 | 370.3 | 412.8 | 517.1 | 417.2 |
| Inventories | 67.1 | 68.8 | 73.4 | 30.4 | 20.3 |
| Cash (useable) | 446.7 | 333.6 | 372.0 | 282.9 | 213.7 |
| Total Liabilities | 2691.7 | 2520.3 | 2477.8 | 2362.0 | 2329.6 |
| T&O Payables | 474.9 | 379.2 | 366.4 | 310.6 | 330.9 |
| ST Borrowings | 350.8 | 315.2 | 298.2 | 240.2 | 223.9 |
| LT Borrowings | 1566.8 | 1613.6 | 1562.6 | 1610.9 | 1642.1 |
| Net Cash Flow | 258.9 | 145.4 | 139.2 | 59.0 | 86.4 |
| Operation | 171.4 | -98.4 | -120.6 | -94.7 | -16.6 |
| Investment | -48.2 | 32.3 | 106.0 | 105.6 | -894.9 |
| Financing | 135.7 | 211.5 | 153.8 | 48.1 | 997.9 |
| EPS | 23.18 | 2.20 | 4.31 | 5.50 | 8.31 |
| NAS | 2.32 | 2.12 | 2.45 | 2.54 | 2.60 |
| D/E Ratio | 0.57 | 0.68 | 0.64 | 0.72 | 0.80 |
FV = fair value gain
Other income = management fees, rental income, fair value gain on investment properties & marketable securities, gain on disposal of land & PPE.
From the table above, we can see that Tropicana achieves 22.4% QoQ increase and 90% YoY increase in revenue. Its profit attributable to shareholders jumps more than 10x compared to the preceding quarter. This is mainly due to gain from fair value adjustment on its investment properties (RM207.2mil).
Excluding the fair value gain, its PBT for FY13Q4 is still a commendable RM117.9mil, much better than RM55.0mil in FY12Q4 and RM49.3mil in FY13Q3.
It is clear that its core business, property development, contributes significantly in FY13Q4 with a PBT of RM120.2mil, almost 3x higher than FY13Q3's RM31.3mil.
Apart from this, its net debt/equity ratio drops to 0.57 without selling its main investment properties.
Both of these are the main positives that I get from current Tropicana's quarterly result.
Tropicana Historical Financial Results
| Tropicana | FY13 | FY12 | FY11 | FY10 | FY09 | FY08 |
| Revenue | 1475.5 | 630.4 | 375.2 | 292.3 | 311.8 | 244.1 |
| Revenue growth % | 134.1 | 68.0 | 28.4 | -6.3 | 27.7 | |
| PBT | 503.6 | 224.9 | 99.2 | 53.4 | 72.1 | 76.7 |
| PBT-FV | 286.1 | 121.5 | 85.6 | 42.3 | ||
| PBT-FV% | 19.4 | 19.3 | 22.8 | 14.5 | ||
| PAT | 361.9 | 171.0 | 77.0 | 43.3 | 50.5 | 34.4 |
| EPS | 34.31 | 32.48 | 16.42 | 9.50 | 18.80 | 13.30 |
| NTA | 2.32 | 2.65 | 2.27 | 2.14 | 1.85 | 2.45 |
| ROE | 14.1 | 8.3 | 8.1 |
Tropicana's revenue and PBT (minus fair value gain) improves tremendously every year since FY2010. This shows the aggressiveness of its management towards becoming a prominent player in Malaysia property development scene.
ROE of 14.1% is misleading here as the net profit is hugely affected by fair value gains.
For its FY2013, Tropicana achieves total sales of RM2.2billion. Its unbilled sales so far stands at RM2.2bil as well.
Tropicana plans to launch new projects worth RM3.2bil in FY2014 and targets to achieve RM2bil sales. Earlier this year it has launched Tropicana Macalister in Penang (RM314mil) and first phase Tropicana Heights in Kajang (RM252mil). The take-up rates are at 36% & 62% respectively.
It has just officially launched the first of the 2 towers of Bora Residences at Tropicana Danga Bay yesterday, in which 100 of total 396 units have been taken up during soft launch last year. Its price starts from RM1,100 psf and the second tower is planned to be launched in July this year.
It may as well launch its ex-Canal city development later this year sooner than expected.
Tropicana Heights Preview: can see leading actress of "The Journey" there
Crazy double storey house price in Kajang, 62% sold...
To determine the fair value of Tropicana my own way, I'll use PBT-FV less 25% tax as the net profit for FY13. This comes to about RM215mil thus EPS is 19.4sen, and target price RM1.94 (from RM1.63).
I hope that Tropicana's management can find buyers for its investment assets quickly, so that its gearing ratio can remain at 0.50 level and also get rid of those massive fair value gain stuff.
Harold Huong
I wish to buy TROP since few month ago...My best buy abt 1.00 but lower only 1.19. Now it's consider flies away...1.38...I still wait for BIG Drop in US..then chance to buy more goods stock
2014-02-23 21:28