9717 SYCAL

号外，号外！又发现一间公司的 Net Net 大过本身的市价了。Graham Net Net 是用公司的流动资产（Current Asset）减掉总债务（Total Liabilities）再除于公司的总股票的数量（Number of Shares）。Benjamin Graham 是我其中一个师父，他的神作品——聪明的投资者（The Intelligent Investor）是我读过最有杀伤力的投资书籍了（我不只读过这一本书而已哦= =）。这连接是大约解释Net Net的概念。然后以上主题的公司就是其中一个例子了，它最新的 Net Net 是 RM 0.51而目前市价是 RM 0.415，中间相差于RM 0.095 或者22.89%。22.89%的利润算是不错了，因为以复利的力量来计算的话，大概3年就可以多一番了，也就是让资本双倍 ^_^ 接下来介绍 SYCAL 的功课：

Data Analysis

• Average free cash flow yield, CY is negative sign with 5%, not my criteria to pick stock.

• EPS's CAGR from year 2010 to 2014 has a nice-looking result, which is 74% per year.

• PE is the factor of Price and EPS. PE and Price's CAGR from year 2010 to 2014 is -26% and 37% respectively. Negative sign on CAGR of PE is decent because the earning is expanding.

• Earning of SYCAL is higher than the growth on PE and this is main reason of PE decreasing yearly.

• Profit margin is upheld at level around 5% and then growth up to 8% in year 2014.

• Profit growth rate is growing from year 2011 to 2014. And previous year up to 100.77%.

• SYCAL is apply big amount of borrowing in year 2014. There is RM66, 198,000 or RM0.21 per shares.

• Cash of SYCAL is rising to RM24, 921,000 or RM0.078 per shares. Insufficient cash for company to pay off those borrowing.

• NTA (RM0.72) is higher than the stock price of SYCAL (RM0.42); there do exist a space between both with RM0.3 or 71.43%.

• Satisfactory result on ROE with 15.74% in year 2014.

• Top management never pays the dividend along the years.

• Free cash flow of SYCAL is under dangerous level due to prior or recently two years with negative free cash flow result.

• Graham Net Net giving SYCAL RM0.51, which is higher than the current price with RM0.09 or 21.42%. Graham Net Net is one of the effective ways to pick stock for Graham.

• Due to some criteria of SYCAL, I think it is suitable for medium term investment. Long term investment will be considered if top management decides to break the rule and pay dividend.

• RHB-OSK is giving the target price of RM0.555 (32% upside potential) in 13/4/2015.

Annual Report Analysis

• Sycal's core business activity is construction which is contributed around 72% and secondary business activity is property development contributed 13% and lastly sales of good and service contributed 15%.

• Construction order book approximately RM550 million.

• In 2014, Sycal secured new joint venture project for proposed mix development in Sri Iskandar, Perak.

• Property development activities included Cheras (KL), Sitiawan (Lumut and Segari), Taiping and Ipoh. This sustains the profit in the future 3 to 5years.

• Director view that current construction order book and development projects in hands, overall performance in the ending of year 2015 expected satisfactory.

• There is no any transaction record for director and substantial shareholders after year 2013.

• Shareholder's fund in year 2009 is negative amount with RM99, 875,000.

• Year 2010 such a turning point for SYCAL.

• Year 2014 also such a DEBT YEAR for SYCAL because it long term and short term borrowing increased by RM60 millions or 3821% and RM2 million or 279% respectively.

• Increased in the joint-venture development cost and decreased in amount to contract customer is the main issue of operating activities going negative result.

• Joint venture development cost is increased RM51, 868,000 or 81% from year 2013 to 2014.

• Joint-venture development in Perak maybe important to SYCAL because of this project, SYCAL apply huge borrowing to pay off its operating cash flow activities.

• Positive result in financing cash flow is due to new proceeding of term loan.

• Term loan's annual effective interest rates in year 2014 are around 8.10 to 9.35%.

• Pengurusan Danaharta Nasional Berhad maybe is the "Touch & Go Card" to apply the great borrowing in year 2014.

• Danaharta is holding 33.33% of total shareholding.

• Danaharta is owned by Minister of Finance Incorporated. So we can be confident for SYCAL on the borrowing issues because it has the big backup in behind.

• 資匯 got an essay discuss about the SYCAL in latest publish report No.330.

• SYCAL operates principally in Malaysia.

Q1''2015 Analysis

• 1st time sees quarter report online in excel form.

• Comparing prior quarter Q1''2014 with latest Q1''2015, there is a upsurge on revenue and profit before tax with 86% and 72% respectively.

• Cost of sales is increasing 94.7% by comparing Q1 with year 2014 and 2015.

• Earnings per share, EPS are enhanced sound with 84.7%.

• Cash of SYCAL is enlarged RM13, 163,000 or 86% within three months period.

• Construction, Property Development and Manufacturing & Trading contributed 80%, 3.8% and 16.2% respectively.

• Increased Group's revenue is mainly from the shopping mall project in Ipoh and the ready-mix concrete operation.

• At 22 May, construction order book approximately RM550 million. There are ongoing development projects in Taiping, Segari and Ipoh and lastly Board feel satisfactory on performance of SYCAL.

本文只供参考。共勉之。