" DickyMe So sad, from RM6.70 to penny level. Malaysia BOLEH!! Even if Microsoft listed in Bursa will become penny stock due to Malaysia gomen policy...kikikiki. 31/10/2019 10:45 AM"
As long as politicians and their sidekicks involve, even Giant companies will fail.
Type Announcement Subject OTHERS Description AWARD OF CONTRACT Rohas Tecnic Berhad (“RTB” or the “Company”) is pleased to announce that HG Power Transmission Sdn. Bhd. (“HGPT”), a subsidiary of the Company, had on 18 February 2020 accepted two (2) letters of award from Power Grid Company of Bangladesh Ltd. for contracts (“Contracts”) with details as follows:-
ONLY FOOLS WOULD NOT BELIEVE ROHAS WILL LIKELY FLY THIS WEEK OR NEXT WEEK!
Author: Smartinvestor2030 Publish date: Thu, 20 Feb 2020, 1:07 PM
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ROHAS TECNIC
Market cap: RM281.2m
Price: 59.5sen
Target price: 79sen (by Hong Leong Investment Bank)
Stronger 4QFY19 results. The results could be announced this week or next week. As of 9MFY19, Rohas reported core earnings of RM17.9m and based on Hong Leong's FY19 core earnings forecast of RM24.4m, Rohas' 4QFY19 core earnings would come in at RM6.5m. This would be 47.7% QoQ higher than 3QFY19 of RM4m and more than 100% YoY higher than 4QFY18 of RM0.2m. Hong Leong expects earnings in 4QFY19 to be stronger sequentially driven by continued turnaround at HGPT (normalized profit c.RM10m p.a.) as well as delivery of 130 towers (RM150k per tower) by Nov-19.
Robust outstanding orderbook. Hong Leong estimates Rohas' EPCC and tower fabrication orderbook of RM430m and RM200m, which translates to a decent 1.9x cover on FY18 EPCC revenue and 1.1x cover on FY18 tower fabrication revenue respectively. In total, Rohas an outstanding orderbook of RM630m, which translates to a sturdy 1.6x cover on FY18 revenue.
Outlook. Looking ahead, its fabrication segment’s orderbook replenishment is to be buoyed by Sarawak state’s initiative to rollout 5,000 towers over the medium term. Recall that Phase 1 of the rollout consisted of 300 towers with Rohas securing 130 towers.
Elsewhere, Rohas has submitted tender for a transmission line from Butterworth to Penang Island which will run parallel to the Penang Bridge (estimated project value: RM1bn).Based on management's past guidance, an award outcome is likely in 1Q20.
Apart from that Rohas will tender for phase 2 extension to its current Laos EPCC contract with a similar contract value tp phase 1.
Overall, the company currently has an outstanding tenderbook of jobs close to RM1b.
Other positive catalysts: Rohas 49%-owned mini-hydropower plant in Indonesia is expected to start contributing in FY20, a delay from 2Q19 due to unusual raining reason. Management guides that the earnings contribution to Rohas is expected to be c.RM4m annually. Its loss-making Vietnamese associate is also likely to turn profitable this year as earlier approved water rate hikes is implemented.
No impact from coronavirus. The installation of towers has nothing to do with coronavirus. The infrastructure needs to be there in the first place for 5G deployment or telco networks!
Author: HLInvest Publish date: Fri, 21 Feb 2020, 9:10 AM
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Rohas announced that it had been awarded two contracts by Power Grid Company of Bangladesh Ltd worth a combined RM192m. This brings its EPCC orderbook to c.RM662m which translates to a healthy 2.9x cover on FY18 EPCC revenue. Its outstanding tower fabrication orderbook stands at c.RM200m translating to 1.1x cover on FY18 tower fabrication revenue. Maintain our forecasts and BUY rating with an unchanged TP of RM0.79. TP is pegged to 12x P/E multiple based on FY20 earnings.
NEWSBREAK
Second job win in FY20. Rohas announced that it had been awarded two contracts by Power Grid Company of Bangladesh Ltd worth a combined RM192m. The scope of work includes design, supply, installation, testing and commissioning of a cumulative 494 kilowatt of transmission lines on a turnkey basis. The contract packages spans a period of 24 to 30 months with works slated to commence in 2H20.
HLIB's VIEW
Strong start to the year. The company has so far secured a cumulative RM250m worth of jobs in FY20. This brings its EPCC orderbook to c.RM662m which translates to a healthy 2.9x cover on FY18 EPCC revenue. Its outstanding tower fabrication orderbook stands at c.RM200m translating to 1.1x cover on FY18 tower fabrication revenue.
Potential awards. Rohas is awaiting an award outcome for a transmission line stretching from Butterworth to Penang Island which will run parallel to the Penang Bridge (estimated project value: RM1bn). There are 5 bidders: from China, India, Australia, Rohas-Muhibbah and MMC-MRCB. The JV structure between Rohas and Muhibbah has not been fixed but will likely be based on job scope breakdown (civil marine works will be >50% of project value). Having undertaken the widening of Penang Bridge before, we reckon Muhibbah is a good partner for Rohas (which will then undertake the transmission line portion of works). Based on management's past guidance, an award outcome may materialise in 1Q20. Apart from that we understand that Rohas will tender for phase 2 extension to its current Laos EPCC contract with a similar contract value.
Associates turnaround in FY20. Rohas 49%-owned mini-hydropower plant in Indonesia is expected to start contributing in FY20, a delay from 2Q19 due to unusual raining season. Management guides that the earnings contribution to Rohas is expected to be c.RM4m annually. We understand its loss-making Vietnamese associate is likely to turn profitable this year as earlier approved water rate hikes is implemented with contribution expected to be between RM3-4m annually.
Forecast. Maintain our forecasts as the contract win falls within our replenishment assumptions.
Maintain BUY, TP: RM0.79. Maintain our BUY rating and TP of RM0.79. We reckon with the completion of its legacy contracts, earnings should grow moving forward driven by stronger profitability at HGPT, new EPCC jobs and stronger tower orders. Our TP is pegged to 12x P/E multiple based on FY20 earnings.
Source: Hong Leong Investment Bank Research - 21 Feb 2020
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....
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Posted by zhangliang > 2020-01-31 11:37 | Report Abuse
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