Due to higher volume and better margin, 1HFY15 revenue and net earnings of MYR81m (+14% YoY) and MYR8m (+45% YoY) accounted for about 51% and 53% of our full-year estimates respectively. We maintainour earnings forecasts and BUY rating. Pegged to an unchanged FY16F P/E of 10x, our TP of MYR1.13, a 29.9% upside, is still below the stock’s 15.6x 10-year average P/E.
Within expectation. OKA Corp’s (OKA) 1HFY15 (Mar) revenue and net earnings of MYR81m (+14% YoY) and MYR8m (+45% YoY) accounted for about 51% and 53% of our full-year estimates respectively. The better results were attributable to higher volume and better margin.2QFY15 net earnings of MYR5m (+84% YoY, +65% QoQ), were on the back of 6%/6% YoY/QoQ increase in revenue to MYR42m respectively,supported by higher sales, improved margin and lower operating expenses.
Demand remains intact amid the higher-cost environment. The outlook of the construction sector remains promising as projects with long-gestation periods, such as the mass rapid transit (MRT) project and various highways and other infrastructure developments, would likely continue to support the demand for all its related materials. We expect OKA to continue to do well. In the meantime, the company is trying to diversify its products, introduce product differentiation, improve on its existing products and implement cost-saving exercises to maintain its competitiveness in the industry.
Maintain BUY, with a MYR1.13 TP. The fundamentals of the company remain intact. We like OKA for its strong presence in Peninsular Malaysia and better earnings visibility as it can ride on rising infrastructure developments in Malaysia. We are maintaining our BUY recommendation on OKA with a TP of MYR1.13, pegged to an unchanged FY16F P/E of 10x – still below the stock’s 10-year average P/E of 15.6x. Our valuation is justifiable with a low 3-year average PEG of 0.18x. With total cash of MYR2.6m and total borrowings at MYR1.6m, the company’s gearing ratio was close to zero as at end-September, which implies an improvement from 0.05x in FY14.
Uncle ckwan & others, I have a question here. How does Malaysia petrol price be calculated? How much sen(s) affected our 95/97 when WTI crude oil fall by 1 USD? out of topic''OKA forum''. hahaha
ckwan, am just a novice compared to you. some counters i am in are classified vv doubtful for others. risky to follow me. can't lead either for who am i to make buy-sell-entry-exit calls, especially if roses somehow turn into tulips. so, still learning. good luck to us indeed ;)
ckwan, i picked up some skills along the way. hope i can use them effectively. thx for the tips on macd, wma/ema over sma, (parabolic?) sar.
we all hv regrets. one of mine is exiting ifcamsc too early when it moved up. no guts to hold longer when still unrated. now rated, i still hesitated eventho price swung few times way below my own short term valuation 'cos i still have Q marks. so, now just observe if i am right or wrong. learning. from my own perspective, Tech stocks in bursa are trickier than Resources counters, so better reserve my 'yes' guts for proven Resources.
after thheavy your good friends should uprate your well-intentioned advice next time.
oops..i m only a simple trend investor, but vigilant, decisive n disciplined.. besides the TRADING SALE during the last 2 months, only EXITED 20% of holdings at aver 0.85sen last week, contributing to 30% of last week's total vol...
take care... as i still have a lot more to unload..
i will not throw below 80sen today..tho u will see heavy offer selling volume above that in the afternoon session..but beginning tmorrow..YES if i have to ...i will then post here to inform u when i m done..
ckwan... since i keep so long d lo... selling will not benefit me also... so i keeping it longer and dont plan selling it d... i have to wait until it rise again liao
ckwan, kingpro, cant really say its recession, but keeping it when it keep going is not good also... sometimes set cut lose is a good options... but i still stuborn here... dont follow my step ar...
btw, ckwan... ARANK... haiz... wait dividen now... i join L&G(0.535) and LBALUM(0.585) also last 2 days(cash rich co)... now so happy can see it down bit by bit daily... LOL... mxthxrfxckxr
Ckawan.. company will always be there.. yesterday, today, tmr, next week.. always gt opportunity to catch it bck. beside FA, TA is important. especially in volatile mkt. i also lazy talk more... ur money ur decision.
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....
ANYU
979 posts
Posted by ANYU > 2014-11-27 21:32 | Report Abuse
duitKwspKita你好幸運 ,得来全不费功夫 ...