Period 4Q12/FY12

Actual vs. Expectations FY12 net profit of RM9.4m was above expectations and accounted for 125.4% and 117.3% of ours and the street's full year estimates of RM7.5m and RM8.0m respectively. It was mainly due to higher contribution from OBB projects and additional revenue from newlyacquired subsidiary KnowledgeCom.

Dividends No dividend was announced during the quarter, as expected.

Key Result Highlights YoY, FY12 revenue rose slightly to RM44.5m (+2.7%) due to higher revenue contribution from projects e.g. ICMS & Outcome Bases Budgeting (OBB) project, which has been c.80% completed thus far according to management. The net profit increased further to RM9.4m (FY11: RM8.8m) due to: 1) higher contribution from its higher GP margin maintenance project i.e. the LHDN maintenance services project, which lifted the EBIT margin to 22.7% (vs. 22.3% previously), and 2) a lower effective tax rate incurred of 2.5% (FY11:2.6%).

QoQ, 4Q12 revenue rose RM17.9m (3Q12:5.3m), boosted by: 1) the higher revenue from the FMSS segment at RM14.5m (vs. RM4.3m previously) as a result of a higher revenue recognition from the OBB project and 2) an additional revenue contribution of RM1.5m from KnowledgeCom, a new subsidiary acquired by the group in Nov-12, which mainly provides corporate IT training services. In tandem with the top line growth, the net profit rose to RM4.6m (3Q12:RM1.7m) despite a reduction in the EBIT margin to 28.8% (3Q12: 35.5%) due to increasing administration expenses (+21%) as a result of the additional staff training cost incurred during the quarter, particularly to cater for the OBB project.

Just yesterday, we commented that CENSOF was within a close range to the long term resistance and that traders should watch for a breakout above this 45 sen level. Indeed, the share price has now broken above this crucial level, having closed up by 1.5 sen at 45.5 sen. The technical picture has improved significantly as a result, and we reckon that any downside from here would likely be limited to the resistance-turned support at 43-45 sen. The technical indicators are also bullish with the MACD Histogram on an expansion track while the Stochastic indicator entering a bullish state. From here, we expect further upside towards 50 sen, and 55.5sen further up. In the meantime, we expect some support to be present at 43 sen and 37 sen.

Source: Kenanga
Labels: CENSOF

insiders sold a lot alredi lio!

...wizx.. censof...Zzzzzz

..burntkaki.. something fishy over there

selling lor

dun look like coming down.. still collection phase

seems dey clearing

looks good...

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