2015年7月5日星期日

9261 GADANG

GADANG 是一间建筑股,同时也有做房地产和水力发电的业务。这三样是公司的主要业绩来源。而公司有个王牌,那就是位于新山的Capital City。这项目在未来的5或6年会来给公司不错的业绩,而且公司估计 Profit after tax 高达 RM 219 million。以单单这产业带来的盈利来计算,这相等于每股 RM1。另外公司在印尼的水力发电厂预计在2016年完成,水力业务在未来将带给公司 RM 20 million 的年业绩(得知于公司的CFO)。接下来看看功课吧:


Data Analysis
  • EPS's CAGR from year 2010 to 2015 recorded 15%, this mean GADANG growing at rate 15% compound each year.
  • Average free cash flow yield, CY (exclude year 2010 and 2011 due to negative FCF) has a attractive result 11%. My criteria on CY are minimum 4%.
  • Profit before tax (PBT) made good result in year 2014 with increased of 94.3% compared to 2013.
  • Incur loss in year 2011 due to the massive increase on "other expense", director explained mainly due to higher write-offs of bad debts and impairment of goodwill of RM 11.15 million.
  • Gross profit margin maintained above 16% for several years.
  • Warrant is issued in year 2014 so diluted EPS will be 19.98 cents. Number of ordinary shares contains 216,359,957 included exercise of warrant which amounted to 19,688,739 units.
  • Tremendous rise on cash in year 2013 is due to the trade receivable decreased. Latest result of cash per share worth RM1, this is seize 71% of share pirce. 
  • Net cash of GADANG is RM 28 million or RM 0.13 per share.
  • Latest NTA is RM 1.68, this is higher than the current share price, and there is 18% difference on it.
  • ROE is snowballing and made 14.5% in year 2014, this result is double the record 7.8% previous year.
  • By combining the latest four quarter report, the EPS of GADANG is 20.52 cents so the PE at current price is 6.92. This level of PE can consider GADANG is undervalue-ing.
  • Previous record of DY, it is maintained at around 3%.
  • Account based earning valuation model giving the intrinsic value on GADANG with RM 2.30, here present 38% margin of safety and 62% of upside potential.
  • JF APEX giving the target price of RM 1.98, here present 28% margin of safety and 39% of upside potential.
  • Fong Siling is one of the top 30 shareholders, he holding 1,500,000 shares.
  • Few funds are support the GADANG, for example CIMB Islamic Fund, EPF and Philip Capital.
Annual Report 2014 Analysis
  • GADANG expand its utility division (construction, maintenance and management of facilities to provide treated water supply) in Indonesia by acquiring 60% stake in PT Ikhwan Mega Power, the holder of a 9 megawatt hydro power concession in Kabupaten Tanah Datar, Sumatera Barat.
  • Business principally involved in civil engineering and construction, property development, water supply, mechanical and electrical engineering services and oil palm plantation.
  • GADANG own 34 subsidiaries companies, there are 5 Constructions, 1 Mechanical and Electric Works, 20 Property Developments, 2 Plantation and 6 Utility.
  • Construction Division own strong outstanding order book of RM 1.3 billion.
  • GADANG feel challenge on Property Division. Unbilled property sales stand at RM 155 million.
  • Construction, Property and Utility is the core division of GADANG.
  • Construction contributed 81% of total revenue; it awarded a RM 350 million contract for the RAPID project.
  • Property contributed 16% of total revenue, GADANG launched development at Salak South, KL. Project comprises 800 units’ condo and 10 units 3 storey shop office.
  • Utility contributed 2.7% of total revenue; construction of hydro power plant in Indonesia is expected completed by year 2016.
  • Plantation is face challenge in future due to oil palm plantation land getting scarce and expensive, GADANG looking for joint ventures with land owners around Ranau area.
  • Inventories decrease lot compared year 2013 is due to the properties held for sales is zero in 2014.
  • Operating cash flow negative result is due to the high increase on receivable with RM 72,285,272.
  • Investing cash flow positive result due to disposal of asset, properties and PPE.
  • Financing cash flow positive result due to large portion in drawdown of bank borrowings amounted to RM 106,862,912.
  • Unrealized loss on FOREX with amount RM 473,252 while RM 35,894 recorded in year 2013.
  • The CEO participate lot of acquire and disposed stock transaction during year 2014.





  • Construction, property development, investment holding and plantation division is carried out in Malaysia.
  • Utility division is carried out in Indonesia.
  • Investment holding division also operated in Singapore.
Quarter Analysis

  • Table above show the three core division and excluded investment holding and plantation both division revenue due to make it simple. 
  • Q1''2015, increase in revenue and profit before tax was mainly due to higher contributions from construction activities.
  • Q2''2015, GADANG didn’t explained the reason on the decrease in revenue. They try to evade the issues.
  • Q3''2015, increase in revenue is due to higher construction and property activities as well as the new acquisition of PT Dewata Bangun Tirta (utility activities) on 5 Nov 2014. Decreased in PBT is due to Construction division which additional cost for completed projects and increase in operating expenses arising from tax penalty.
  • GADANG expect Utility Division contributed RM 20 million of revenue in FY2016.
  •  A detail article which response by CFO of GADANG. Here the link.
本文只供参考。共勉之。

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