25 January 2016 the star :GUH has unbilled sales of RM100mil
by david tan GEORGE TOWN: GUH Holdings Bhd has generated unbilled sales of about RM100mil for its water and wastewater treatment business for fiscal year 2015.
Group managing director Datuk Kenneth H’ng told StarBiz that the amount included new contracts secured for 2015.
“The amount is more than the RM85mil of unbilled sales for the same period of 2014,” H’ng added.
“For 2016, the contribution from the division is projected to be more than 15%, compared with less than 10% in 2015, due to the higher construction progress of water projects.
“We are now tendering for 10 water and wastewater projects with an approximate value of RM1.6bil. We expect to secure some of these projects in this 2016 fiscal year,” he said.
On its printed circuit board (PCB) business, H’ng said the value of orders secured and to be secured was approximately RM55mil for the facilities in Penang and Suzhou, China, compared with RM47mil achieved in the previous year corresponding period.
“The Suzhou plant is the larger contributor of the two, generating around 55% to 60% of the revenue of PCB’s division in 2015, while the Penang facility generates the remaining.
“Automotive, home appliances, electronic components and TV, video, visual, and audio segments are the key markets for the PCB products,” he said.
On its property division, GUH expected it to contribute about 15% to the group’s revenue for 2016, up from about 7% in 2015, as it now has about 203 acres of land bank in Seremban and Penang.
In Seremban, the group still has about 140 acres of land bank, while in Penang, the group has 46.2 acres in Simpang Amat, and 17 acres in Sungai Bakap.
On its upcoming project on a 46.2acre land in Simpang Ampat, the group is still in the re-planning stage, according to H’ng.
H’ng added the group was looking at developing the land with commercial and residential components including affordable housing projects, which may take about eight to 10 years to complete.
“In Sungai Bakap, the group is planning a light industrial park and hopefully the project can be launched in second half FY2016/first half FY2017.
“The lands are strategically located in South Seberang Perai, where the Batu Kawan Industrial Park is being developed.
“With an increasing number of local and multinational companies announcing plans to set up factories in the district over the next few years, we believed that there will be growing demand for light industrial factories from small-and-medium-sized suppliers who would want to be located close to their customers.
“The project may not contribute significantly in 2016, but it is expected to contribute positively to the future earnings of the group,” he said.
I think the boss already lose interest in the business. When ringgit is weak, export company like this should perform well, but they show the opposite. So i expect nothing but continue price drop for this company. Perhaps to Rm0.70 level?
Announcement of dividend probably Aug 18 together with release of Quarterly Report ending 30 June. Chart presently showing sharp descent. If 2Q report is unfavourable, then this Penang lembu is going down into the mud. A few corporate publicity attempts by the management to highlight the so-called RM120 million unbilled sales don't seem to excite investors sentiment. Give good 2Q report with enticing high dividends, then only the price will soar again.
--Buy recommendation due to its cheap valuation and rich assets.
--Despite the substantial cash outlay in 1QFY16, its balance sheet remains strong with a net cash position of RM98.62m as at 1QFY16, translating into RM0.37/share.
--The management aims to match its dividend yield to prevailing fixed deposit rate. Based on the net dividend of 5.0 sen/share, it also comes with an attractive dividend yield of 6.4%.
--For its property development division, GUH has planned to launch RM100m worth of residential projects in Taman Bukit Kepayang, Seremban in Negeri Sembilan in FY16. This comprises a mixture of terrace (RM45m) and semi-D (RM50m) houses.
--Expect earnings contribution to pick up in the subsequent quarters due to higher progress billings from property and water and wastewater divisions(unbilled sales of RM100m ).
when you hear many many people said "shit stock", it means that it's time to take out FD to buy share... more people say it, the more you should invest. Simple Pasar theory.. :)
Wondering why no share buyback despite the renewal of authority? Does it mean GUH is cash-rich enough to absorb the decreasing share price? The last announcement of share buyback was 7 March 2016, 10,000 units @ 0.90 with Treasury shares accumulating 14,044,400. Based on Annual Report 2015, total equity firepower is more than RM392 million. Why is the share price allowed to drop just like that without any intervention? Does it mean GUH is confident of the coming QR ending 30 June as a catalytic booster to revive its fortune?
Will this be the new normal? In previous years, GUH gives 5 sen dividend once every year. Now, 1st interim, 2nd interim? Will the 1st + 2nd interim dividend more than 5 sen?
GUH IS A CASH RICH COMPANY WITH NEGLIGIBLE BANK BORROWING. IT IS VERY DIFFICULT TO FIND A COMPANY WHICH HAS A CLEAN, STRONG AND HEALTHY BALANCE SHEET & HAS A PAR VALUE OF RM1.00 TO SELL AT BELOW PAR AT RM0.85. DON'T WORRY, KEEP & EARN THE DIVIDEND FIRST, THE SHARE WILL SOONER OR LATE GO BACK TO RM1.00. I JUST BOUGHT AT RM0.85.
GUH ANNOUNCED IN Q2 2016 REPORTS: "Looking ahead, the Group foresees better performance in the second half of 2016." THIS IS WHY THE SHARE PRICE SHOT UP BUT NOT MUCH DUE TO BEARING SENTIMENT IN THE MARKET.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
kkng0819kk
1,566 posts
Posted by kkng0819kk > 2015-11-27 17:44 | Report Abuse
When can see blue sky again?