The result is a lot better than expected, taking into account exchange loss, pre-acq expenses, and pp expenses (previous year a 4.7m revaluation gain).
Try take out the Q4,15 revaluation investment property of 4,681. Overall result fy16 was improve significantly Credit management for below item : Fix cost, Administrative expenses is under control. OP improved and able to beat rising financial cost, and depreciation expense. Increase Foreign currency translation reserve.
Price action of today shows latest quarter is not up to expectation. If it is good, the share price will boom today isnt it? This proves that opinion does not really matter in investing. Anyway, looking forward to the next quarter.
OCK is poised to deliver a strong 3-year (2015-18) core PATAMI CAGR of 22%, underpinned by its enlarged towerco assets. Maintain OUTPERFORM call with unchanged TP of RM0.96, based on DCF valuation (WACC: 9.1%, TG: 1.5%).
Solid closing for FY16. OCK reported a strong revenue growth of 29% YoY (to RM407m) in FY16 with EBITDA advancing 28% YoY, in tandem with its top-line performance. Its PATAMI, however, recorded lower growth of 0.8% YoY (to RM25.8m) as a result of forex loss of RM3.2m and under-provision of prior year taxes of RM1.9m. Stripping-off these EI items, its normalised core PATAMI would have grown 40% YoY to RM31m. OCK Yangon’s tower business, meanwhile, contributed its maiden revenue of RM6.7m (from c.600 revenue generating sites) since 2H16 and recorded a PAT of c.RM1m. Dividend-wise, while OCK did not recommend any dividend in conjunction with its 4Q16 result release, the group does not discount that it may reward its shareholders in the later stage.
OCK has completed and handed over 604 sites to Telenor Myanmar as of mid-Feb 2017 and expects to complete all 920 towers by 2Q17 (from initial target of 1Q17 followed by more detailed site surveys conducted by Telenor Myanmar, which could lead to the remaining towers being built in more strategic city-centric locations). The changes could yield an advantage for OCK as those sites could provide good co-location potential and attract additional tenants in the future.
we also understand that discussions of the long-term lease have commenced with Myanmar Post and Telecommunications (MPT) on co-locations, which could further enhance tenancies moving forward, if successful. The Myanmar project is expected to contribute c.RM60m revenue per annum (based on a tenancy ratio of 1.0x) with a lucrative targeted EBITDA margin of c.60%. Should OCK Yangon manage to improve the tenancy ratio, it would provide a positive catalyst to OCK’s forward earnings thanks to the lucrative margin contribution.
Vietnam tower business. we also gather that SEATH is aiming to increase its asset base by additional 300-400 sites per annum with selfgenerated fund.
“edotco is already contributing, but the contribution is small in the scale of things. The revenue will be to the tune of 7.5% of Axiata’s revenue this year, which is about RM1.5bil for just a bunch of steels."
more importantly:...
“In the future, the way towers work and based on their business model, of course after some stability period, it is (like an) ATM (automated teller machine) ... we just collect money (from the rental of the towers),” he said.
not forgetting they are also on the lookout to buy one or two companies to achieve their ambition to be top 10 in the world in the next 1-2 years..
Be patient guys. It will move up, I prefer move up slowly rather than skyrocket in short term. Sustainability is what investor should focus, we are not speculators.
Zai Zai's post : Stock: [OCK]: OCK GROUP BERHAD Feb 25, 2017 11:09 AM | Report Abuse
i dun like risk, but i like to manage risk. so i own this share -------------------------------------------------------------- Now he/she asked this share can buy?
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....
funda
484 posts
Posted by funda > 2017-02-27 20:02 | Report Abuse
Also not yet consolidate the SEATH profit. generally much better results than last year if minus the one off items.