BMKLCI
1820.89 pts -9.02 pts (
-0.49%) Volume 1.87b Value 1.99b
1) The index traded in negative territory throughout the
sessions, weighed down by O&G names as oil prices crashed. Main losers in
the sector include ARMADA -10%, SKPETRO-9%, COASTAL-8%, UMWOG-11%. Sentiment
continues to be weak, weighed down by concerns of oil price directions after
the OPEC meeting failed to provide any significant solution. Plantation sector
outperformed + 0.4%, led by IOICORP +2.8%, PPB+0.7%, SOP +6%. AIRASIA bucked
trend, adding 7.5% on the prospect of cheaper fuel cost. Market breath was
negative, with losers outpacing gainers 609:241. Futures closed at 1816.5 pts (
4.4 points discount).
2) Heavyweights : AIRASIA+7.5% RM2.58, CARLSBG +2%
RM12.00, DRB -4.7% RM1.81, MISC-1.7% RM7.31, PCHEM -.1.2% RM5.63, TENAGA-0.3%
RM14.26, TM-0.3% RM7.08.
3) DBT : ECOFIRS-WC 34m @ 0.145 ( 17% of warrant issued),
LUSTER 20m @ 0.10, SUNZEN 12m @ 0.375.
4) Situational;
JTIASA -2.6% - after announcing that it will invest
RM70.0m in it's 4th CPO mill. It currently has two on stream, with a combined
processing capacity of 150 metric tonnes per hour, while another mill, capable
of processing 120 metric tonnes per hour, will be commissioned towards the end
of this year. The company said the two mills had so far produced about 69,000
metric tonnes of CPO and 11,000 metric tonnes of palm kernel.
MISC -1.7% - after it was announced that MMC Corp Bhd has
bought 15.73 per cent stake in port operator, NCB Holdings Bhd, from MISC Bhd
for RM221.98 million. The deal comprises 73.99 million shares at an average
price of RM3 each. MMC said the purchase would be done in an off-market direct
business transaction to be executed on even date. MISC said its disposal of the
15.37 per cent stake to MMC was to exit its non-core and non-energy related
businesses and investment
5) SENTORIA
12 Months FY9/14
Revenue +5.3% RM218.4m Net
-45.1% 29.1m EPS 6.62sen
Generally in line if exclude exceptional loss of RM12m
from a "once in a 40-year flood". Cons FY9/14 Net RM 36.7m
The Group's revenue for the current FY increased by 5.3%
YoY to RM218.4 million from RM207.5 million in the previous FY. This was mainly
due to higher billings from property projects. The Group's profit before
taxation for current FY however decreased to RM35.5 million as compared to
RM43.8 million in the previous FY. This drop in profit was mainly due to lower
contribution from the leisure and hospitality division resulting from the
prolonged wet weather in East Coast region of Peninsular Malaysia in November/December
2013 which caused severe flooding. Higher overheads of Bukit Gambang Safari
Park which was in its first year of full-fledged operation and higher finance
cost group-wise were also contributory factors.
It must be noted that the Group's profit before tax for
previous FY included a gain of RM4.2 million from land disposal. If this credit
effect is disregarded, the YoY decline for the current FY was only 10.4%.
The Group's revenue for the current quarter increased by
14.4% to RM64.5 million as compared to RM56.4 million in the preceding quarter
ended 30 June 2014. This was mainly contributed by higher billings from the
property development division.
This increased revenue caused the Group's profit before
taxation to increase 20.9% quarter-on-quarter to RM13.3 million. This sharp
increase in profits was attributed to higher and improved margins achieved by
the property development division.
Prospect
The Group will continue to emphasise on its core strength
in building affordable homes. The Group's new affordable housing project in
Taman Bukit Gambang, which was launched in 3rd quarter of the current FY to
cater for the growing demand near Bukit Gambang Resort City had received good
sales response to-date and will be a major contributor in the coming FY. The
on-going construction of the Pembangunan Perumahan Rakyat 1 Malaysia (PRIMA)
project, in Pahang is also expected contribute significantly.
These projects together with the anticipated launches of
the initial phases of the Group's properties outside its traditional stronghold
in the Greater Kuantan area will ensure that the Group sustains its
profitability in the coming year.
As for the leisure and hospitality division, management
will continue its efforts to enhance its operational efficiencies and cost
control measures. These together with increased marketing and advertising
activities should enable it to see increased visitors and improved occupancy
rates.
With the Group resuming its normal growth for FY9/15
without the exceptional loss from the flood of FY9/14, Sentoria is an
attractive proposition with FY9/15 PER of 10.7x and a 2-year prospective
normalised earnings CAGR of 28%. Any weakness from a wrong reading of the
results is a buying opportunity.
6) Market: the direction & sentiment of the local
bourse is dependent on the performance of crude oil as Malaysia is the only net
exporter of this commodity in the Far East.