What Stock To Buy ?
Is the worst is over for Acostec?
Acostec which is listed as a manufacturing compony for sound system equipment had just fully dispose of it last piece of manufacturing related subsidiary which ended the Era as a manufacturing company.
As a replacement, the company venture into property development business.
The company may later change it name as stated in AGM report.
Below is some of the recent disposal activity:
| Disposal | |||||
| Company Name | To Whom | Date | Amount | Completion | Impact to P/L |
| Formosa Prosonic Technics Sdn Bhd | Formosa Prosonic Industries Berhad | 07.12.2017 | 1,060,000 | 02.01.2018 | -1,180,180 |
| Teras Eco Sdn Bhd's Land | harum Eco Dormitory Sdn Bhd (HED) | 15.12.2016 | 20,000,000 | 07.12.2017 | +1,403,174 |
Formosa Prosonic Technics (FPT) S/B is the last piece of the manufacturing subsidiary.
The disposal will lead to a one off loss RM1.18 Million.
While on the other hand, the second disposal of a piece of land is for the development project of the worker hostel by it's joint venture subsidiary. The land disposal will made a one off gain of RM1.4 Million which can be off set for the losses incurred from disposal of the FPT S/B.
After fully dispose for all the loss making manufacturing business, the company new focus will all be direct into Property development business.
Acostec currently own 2 subsidiary companies with profit guranteed :
1. Teras Eco S/B
2. JM Cemerlang S/B
| Company | Acquire date | Profit Guaranteed Period | PAT (RM) | EPS |
| JM Cemerlang Sdn Bhd | 25.03.3015 | Q1 2016 to FY 2019 | 18,500,000 | 10.98 sen |
| Teras Eco Sdn Bhd | 25.09.2015 | up to FY 2017 | 16,000,000 | 9.49 sen |
This 2 company will jointly provide the Profit After Tax Guranteed to Acostec up to total of RM34.5 Mil which is around EPS of 20 sen up to FY2019.
Picking under quarter report
| Property Segment | |||
| Cummulative Period | Rev | PBT | PAT |
| 9mths end Sep 15 | 9,493,000 | 578,000 | 433,500 |
| 12mths end Dec 15 | 20,374,000 | 3,623,000 | 2,717,250 |
| 3mths end Mar 16 | 927,000 | -773,000 | -579,750 |
| 6mths end Jun 16 | 18,197,000 | 2,524,000 | 1,893,000 |
| 9mths end Sep 16 | 18,628,000 | 1,941,000 | 1,455,750 |
| 12mths end Dec16 | 60,036,000 | 8,431,000 | 6,323,250 |
| 3mths end Mar 17 | 327,000 | -1,174,000 | -880,500 |
| 6mths end Jun 17 | -1,391,000 | -3,848,000 | -2,886,000 |
| 9mths end Sep 17 | -1,191,000 | -5,496,000 | -4,122,000 |
| Period | Q Rev | Q PBT | Q PAT |
| Q3 2015 | 9,493,000 | 578,000 | 433,500 |
| Q4 2015 | 10,881,000 | 3,045,000 | 2,283,750 |
| Q1 2016 | 927,000 | -773,000 | -579,750 |
| Q2 2016 | 17,270,000 | 3,297,000 | 2,472,750 |
| Q3 2016 | 431,000 | -583,000 | -437,250 |
| Q4 2016 | 41,408,000 | 6,490,000 | 4,867,500 |
| Q1 2017 | 327,000 | -1,174,000 | -880,500 |
| Q2 2017 | -1,718,000 | -2,674,000 | -2,005,500 |
| Q3 2017 | 200,000 | -1,648,000 | -1,236,000 |
From the record, the total revenue recognised for the period from Q3 2015 to Q3 2017 is RM79.2 Million with Profit Before Tax of RM6.56 Million and Profit After Tax of RM4.9 Million.
According to the avialable information from Quarter report, the project byTeras Eco (Senibong 88) is completed with CCC which shall be contribute PAT of RM16 Million by FY2017. The shortfall of PAT by Teras Eco is RM11 Million as only aound RM5 Million of PAT recognised so far. The last Quarter which is Q4 of 2017 quarter report is gonna release in just a corner.
Will it be delay for the profit guaranteed to be recognize ?
Or will it be a big profit suddenly kick in?
Let's wait and see.
ACOSTEC
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Created by secret1q | Dec 20, 2018
Discussions
Be the first to like this. Showing 3 of 3 comments
Hi phil23, all the information is from quarter report. in quarter report only show for the cumulative YTD figure, i do some math to get each quarter recognize figure from there.
2018-04-04 07:02
You are right that for the Senibong 88 project the profit almost fully recognised. However I do doubt as there are several unit cancellation so make the company to do the reverse adjustment to make Q2 2017 revenue become negative figure. Thus, it shall had some shortfall for the Eco Teras to get 16 Mil guaranteed PAT. It is not very good that the company quarter report did not stated how much shortfall to be recognize. As investor we can only guess ourself base on available information.
2018-04-04 07:07
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phil23
secret1q , how did you get the second table?
From the first table you made, senibong88 contribution should only till Q1'17 because profit is almost fully recognised.
Subsequent quarters may be due to Dormitory project and the Desa88 preparation loss.
If we sum up according to your first table Q3'15 to Q1'17, revenue is over RM100m, PAT RM11.3625m
Less than RM5m gap from the profit guarantee??
2018-02-25 18:07