BIMB Research: PUC’s FY15 core net of RM2.4m is below our forecast making up only 53% of our full year numbers. This is due to some delay in recognising its profit hence expect earnings to improve in the next quarter.
We leave our numbers unchanged and our target price remains at RM0.18. Maintain BUY.
Lower earnings. FY15 earnings fell by 75.6% respectively mainly due to divestment of biometrics division (involves in fingerprint verification products) and advertising and media segments in the current quarter.
Expect stronger FY16 earnings. We expect PUC to register stronger earnings in the next quarter as the company will recognise its earnings from Engineering, procurement & construction (EPC) division. Venturing into Renewable Energy. In the 2014, PUC ventured into renewable energy business and plans to develop and operate its inaugural 1 Megawatt Power (MWp) capacity solar photovoltaic (PV) power plant located in Sungai Petani, Kedah, Malaysia. Looking forward, we believe key earnings growth will be from the renewable energy division is expected to begin contribution to the group revenue in 1QFY16.
New income for FY16. PUC is partnering GreenTech Malaysia Alliances SB to bid for renewable energy projects for government or GLCs for solar, biogas and biomass related projects. GreenTech is wholly owned by Green Technology Corp and is under the control by Energy, Green Technology and Water Ministry. To date, PUC has submitted 16MW solar plant application and pending for approval. Meanwhile, the company will proceed with plans to build up to 1.5MWp solar PV plants at a 4.91 acre plot in Sungai Petani located 3km away from its existing 1MWp. Financials. Through the JV with Ministry of Energy, Green Technology and Water, we believe the success rate of project tender is high.
We maintain our FY16 and FY17 earnings forecasts at RM7.9m and RM10.9m respectively. Meanwhile, balance sheet is strong with net cash position. Our target price remains unchanged at RM0.18 using SOP valuation.
now, the mother PUC is 0.09 , son WB is 0.025. If the PUC price on TP 0.16 ~ 0.18, what is the price for PUC-WB ???? Should be around 0.045 ~ 0.05. And will close to PUC- WA price...
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....
Lydia
59 posts
Posted by Lydia > 2016-02-24 10:01 |
Post removed.Why?