Property Sector: New Budget Measures May Boost Recovery

The 2020 Budget includes a few measures to boost the property sector, such as:

• Lowering of the threshold of high-rise property prices in urban areas from RM1 million to RM600,000 for foreign buyers
• Shifting the real property gain tax base year from 2000 to 2013
• A new Rent-to-own scheme for first-time homebuyers
• Extension of BSN's Youth Housing Scheme

Hopefully these measures will put a floor on the property prices and even boost activity in that sector, which has good multiplier effect for the rest of the economy.

Looking at the chart below, we can see that Property Index (at 770) is fast approaching the support at the horizontal line at 750. After a drop of nearly 50% from the peak at 1500, property stocks are fairly attractive.


Chart: Property Index as at Oct 11, 2019

The Starbiz has an article on the depth of the slump in share price for property counters. It is entitled Beaten-down property stocks at bargain levels. The hard copy of the article has the table and the chart below.


Table: Property developers' financials


Chart 2: Property developers' price-to-book ratios vs. their gearing ratios

The stocks that are close to the bottom left-hand corner of the above chart are relatively attractive than those that are close to top right-hand corner.

I like the following Kenanga's picks for property sector- ECOWLD, IOIPG, MAHSING, SIMEPROP, SPSETIA and UOADEV.

MKH: Inching Towards Recovery

Result Update

For QE31/12/2018, MKH's net profit rose 411% q-o-q or 59% y-o-y to RM26 million while revenue was mix- down 20% q-o-q & 38% y-o-y to RM268 million. Despite the decrease in revenue by RM65.7 million, the profit before tax for the current quarter of RM41.1 million was higher as compared to the preceding quarter of RM25.2 million mainly due to inclusion of unrealised foreign exchange gains of RM9.4 million in the current quarter as compared to unrealised foreign exchange losses of RM9.5 million in the preceding quarter. Excluding unrealised foreign exchange gains/(losses), the profit before tax is lower in the current quarter of RM31.7 million as compared to the preceding quarter of RM34.7 million mainly due to lower profit contribution from both the property and construction and the plantation division as a result of lower gross profit.

Note: MKH's latest result was released on February 27, 2019.

Table: MKH's last 8 quarterly results

Graph 1: MKH's last 33 quarterly results

MKH's management runs a very tight ship. Despite a tough operating environment for property development and plantation, the group still managed to stay in the black for every segment. See the segmental results for 1Q in the last 3 years (ie. FY2017, FY2018 & FY2019).

Graph 2: MKH's segmental results for 1Q 2019, 2018 and 2017.

Future Prospect

MKH's bottom-line is dependent on 2 major segments- Plantation and Property Development. For Plantation segment, the CPO price chart shows that CPO has broken above the downtrend line, and it is now forming a base for a possible recovery. As for Property Development segment, MKH's unbilled sale as at Dec 2018 was RM1.0 billion as compared to RM903.5 million last year. Despite the gloom and doom for property sector, MKH is expected to do reasonably well for this business as its landbank is fairly well-located and its tied up with Panahome of Japan to build sustainable homes will be a strong drawing factor. Panahome is part of the Panasonic group. For more, go here.

Chart 1: CPO's weekly chart as at Apr 12, 2019 (Source: Tradingeconomics.com)

Financial Position

MKH's financial position as at 31/12/2018 is deemed adequate with current ratio at 1.61 times and total liabilities to total equity at 1.01 times.

Valuation

MKH (trading at RM1.38 as at 4:30pm) is now trading at a trailing PER of 10x (based on last 4 quarters' EPS of 13.5 sen). Price to book is at a very attractive 0.5 x (based on NAB of RM2.72 per share as at 31/12/2018). Dividend yield of 2.5% is still respectable despite heavy investment in the plantation segment. Overall, MKH is considered fairly attractive.

Technical Outlook 

MKH formed a base around RM1.10-1.40 over the past 1 year. An upside breakout of RM1.40 could be the start of the recovery for this stock.

Chart 2: MKH's weekly chart as at Apr 15, 2019_12.30 (Source: Malaysiastock.biz)

Chart 3: MKH's daily chart as at Apr 15, 2019_12.30 (Source: Malaysiastock.biz)

Conclusion

Based on satisfactory financial performance, reasonably healthy financial position, fairly attractive valuation and promising technical outlook, MKH is a good stock to consider for long-term investment.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

MKH: Exciting Prospect Ahead

Result Update

For QE31/12/2017, MKH's net profit rose 171% q-o-q but dropped 59% y-o-y to RM16 million while revenue dropped 26% q-o-q & 26% y-o-y to RM194 million. Despite the drop in revenue by RM66.7 million, the profit before tax for the current quarter of RM27.4 million was higher compared to the immediate preceding quarter of RM17.0 million mainly due to improvement in loss before tax to RM0.4 million in the current quarter as compared to immediate preceding quarter loss before tax of RM12.8 million from the plantation division with lower average production cost and absence of biological assets written off of RM4.8 million. The lower revenue was mainly due to lower revenue from the property and construction division as the new development phases namely, Pinang and The Palm in Hill Park Shah Alam still at the preliminary stage of development.

Note: MKH's latest result was released on February 28, 2018.


Table: MKH's last 8 quarterly results


Graph: MKH's last 20 quarterly results

Future Prospect

In a recent article in The Edge Daily entitled"A Year of Harvest for MKH", MKH's Executive Chairman Tan Sri Alex Chen spoke about its palm oil estate achieving bumper harvest for current financial year as the palm oil trees reach their productive age, with projected output of 28 tonnes per hectare. In addition, its property development segment is expected to do well as it will be launching more projects with total GDV of RM1.15 billion. This will add to its total unbilled sales of RM903.5 million as at 31/12/2017.

Financial Position

MKH's financial position as at 31/12/2017 is deemed adequate with current ratio at 1.66 times and total liabilities to total equity at 1.07 times.

Valuation

MKH (closed at RM1.53 last Friday) is now trading at a trailing PER of 6.9x (based on last 4 quarters' EPS of 22.16 sen). Dividend yield of 3.3% is still respectable despite heavy investment in the plantation segment.

Technical Outlook 

MKH has declined substantially from its peak at RM3.50 in June 2014. Currently it seems to have found good support at the horizontal line at RM1.50. If this strong support failed, its next strong support is at RM1.00.


Chart: MKH's monthly chart as at Mar 16, 2018 (Source: Shareinvestor.com)

Conclusion

Based on satisfactory financial performance, attractive valuation and positive technical outlook, MKH is a good stock to consider for long-term investment.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

UOADEV: A Sudden Sharp Drop

Another stock that took a sharp tumble last Friday is UIADEV. There is no news to account for the drop. I normally explain such phenomenon to selling by major shareholders. If that's true in this case, then we might not have seen the end of the selling.

UOADEV is a very well-managed property investment and development group. This could well be a buying opportunity to get into a very dynamic company.

UOADEV (closed at RM2.35 last Friday) is now trading at a trailing PER of 6.1x (based on last 4 quarters' EPS of 38.38 sen) and at a Price ot Book of 1.0x (at a NTA of, with a price target of RM3.00 on 24 August.

Chartwise, the stock is still in a long-term uptrend which fit into a 3-fan uptrend pattern. Currently, UOADEV is resting on the middle fan-line, S-S2 at RM2.35. If this support failed, it will likely drop to the 3rd fan-line with support at RM2.00.

I believe UOADEV could be a buying opportunity at current price. Given the current weak market condition, your buying should be carried out gradually. Good luck!


Chart: UOADEV's weekly chart as at Oct 20, 2017 (Source: Malaysiastock.biz)

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision. 

MRCB: Cheap Enough?

MRCB is an integrated transport hub developer. Since the successful completion of its KL Sentral CBD development, it has expanded its projects to include PJ Sentral, Kwasa Damansara & Penang Sentral. For more on its projects, go to here. 

To finance its mega projects, MRCB has proposed a 1-for-1 Rights Issue at 79 sen which comes with 1 free warrant for every 5 shares subscribed for. The exercise price for each warrant is fixed at RM1.25. For details of the fixing of the Rights Issue & warrant exercise price, go here. The Rights issue has prompted a sharp drop in MRCB share price from RM1.75 in May to as little as RM1.01 on Sep 26 & 27.

Kenanga has maintained a fairly positive view on MRCB, valuing MRCB at RM1.14 after the Rights issue. Assuming that MRCB closed at RM1.03 today (the last cum date), the theoretical ex-Rights price is about RM0.97. This gives MRCB an upside of about 17%. I feel that Kenanga's fair value is too conservative, probably due to market reality.

Based on the sharp drop in share price over the past 4 months, I believe MRCB is a good stock for long-term investment. You can either buy MRCB today and then go through with the Rights issue or buy it after the Rights issue when further "massaging" may throw out even lower prices. Good luck!

Chart 1: MRCB's daily chart as at Sep 28, 2017 (Source: Shareinvestor.com)


Chart 2: MRCB's monthly chart as at Sep 28, 2017 (Source: Shareinvestor.com)

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

IBhd: Earnings Maintained But Unbilled Sales Dropped Further

Result Update

For QE30/6/2017, IBhd's net profit rose 6% q-o-q or 34% y-o-y to RM19.6 million while revenue rose 24% q-o-q or 47% y-o-y to RM128 million. IBhd's revenue and profit before tax rose q-o-q due to "the continuous growth of the Property Development segment".


Table: IBhd's last 8 quarterly P&L


Graph 1: IBhd's last 20 quarterly P&L

The company was upbeat about its future prospects due to the success of the Hill10 Residence @ i-City (previously named Converse @ i-City), a 204 exclusive luxury residences located above the DoubleTree by Hilton @ i-City Shah Alam, which has attained a current take-up rate of 70% after its launch in April. Nevertheless we can see that unbilled sales has been on the decline since June 2016. In term of quarters of sales, unbilled sales peaked in September 2015 at 12 quarters of sales and it has since declined to less than 3 quarters of sales in June 2017.

 

Graph 2: IBhd's unbilled Sales for last 20 quarters
 
Valuation

I-Bhd (traded at RM0.615 this morning) has a trailing PER of 8.7x (based on last 4 quarters' EPS of 7.04 sen). At this PER, I-Bhd is deemed fairly valued.

Technical Outlook

IBhd's gradual uptrend seems to have ended with the decline last week. For now, IBhd is likely to move sideways between RM0.56 & RM0.60.


Chart 1: I-Bhd's weekly chart as at Jul 17, 2017 (Source: Shareinvestor.com)


Chart 2: I-Bhd's monthly chart as at Jul 17, 2017 (Source: Shareinvestor.com)

Conclusion

Based on good financial performance and fair valuation, I assign a rating of HOLD for IBhd. Its share price performance is likely to be unexciting for the next few quarters due to mildly negative technical outlook and weaker revenue.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision. 

IWCITY: A Bridge Too Far

In December 2015, TRX City Sdn Bhd (TRX City) announced that it had entered into the share sale agreement with IWH CREC Sdn Bhd (IWH CREC) for the latter to take a 60%-stake in the 485-acre Bandar Malaysia project. IWH CREC is a 60:40 JV company owned by Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (M) Sdn Bhd (CREC).

In March this year, IWH announced a proposed merger of with its listed associate Iskandar Waterfront City Bhd (IWCity). This will effectively give the new IWH/IWCity a 36%-stake in the Bandar Malaysia project.

In addition to its stake in TRX City, the new IWH/IWCity will also own up to 7,400 acres of land fronting the sea between Johor Baru and Singapore. IWH currently owns 1,072 acres mainly located in Tebrau, Johor as well as 3,900 acres of waterfront land, of which 80% has been reclaimed.

TRX City announced 3 hours ago that that the Bandar Malaysia development agreement with IWH CREC has lapsed due to failure to meet the payment obligations outlined in the Conditions Precedent under the SSA. For more, go here.

Interestingly, IWH CREC has disputed claims by TRX City about 1 hour ago (here). It stated categorically: “IWH CREC is concerned with the content of the termination notice and the subsequent press release issued by TRX City, which, given the factual matrix, does not fully and accurately reflect the circumstances and conduct of the parties in this matter.” (Or, in plain English, you are not telling the truth!) I wonder whether there is a political angle to this break up. Maybe, too much drum-banging by this guy?

Happily Ever After It Was Not...

Without the Bandar Malaysia project, the IWH/IWCity merger could still go thru. However, the centerpiece of the merger is of course the stake in Bandar Malaysia. The potential collapse of the Bandar Malaysia deal would reduce IWH/IWCity to be just another Johor property stock. With that, I believe we could see a sharp correction in IWCity share price tomorrow. As the strong support is at RM1.75 - a long way down from its high perch above RM3.00 - I advise caution if you want to trade on this stock.  

Chart: IWCity's monthly chart as at May 3, 2017 (Source: Malaysiastock.biz)

IBHD: Earning Maintained Due to Property Development

Result Update

For QE31/3/2017, IBhd's net profit rose 32% q-o-q or 21% y-o-y to RM18.6 million while revenue was unchanged q-o-q but rose 28% y-o-y to RM103 million. The better performance in both the revenue and profit was mainly due to higher revenue recognition of on-going projects for the Property Development segment as well as higher revenue and profit before tax for the Leisure segment. While revenue & PBT were relatively unchanged q-o-q, what was highlighted by management was the strong performance of the Property Development segment. To wit:

"[O]verall comparable result masks the continued growth of the Property Development segment where there was an increase in revenue and profit before tax for the quarter due to higher progress recognition of on-going projects. Lower revenue and profit before tax from the Leisure segment was expected for the current quarter as Leisure segment had attained its peak seasonal revenue in the preceding quarter due to the year-end school and festive holidays."


Table: IBhd's last 8 quarterly P&L


Chart 1: IBhd's last 15 quarterly P&L

Valuation

I-Bhd (closed at RM0.615 yesterday) is now trading at a trailing PER of 9.4x (based on last 4 quarters' EPS of 6.5 sen). At this PER, I-Bhd is deemed fairly valued.

Technical Outlook

IBhd is in a gradual uptrend line. Its immediate resistance will come from the horizontal line at RM0.66.


Chart 2: I-Bhd's weekly chart as at April 18, 2017 (Source: Chartnexus)

Conclusion

Based on good financial performance and fair valuation, I-Bhd could be a good stock to consider for long-term investment.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision. 

KSL: Rising In A Hurry

Result Update

KSL's result for QE31/12/2016 was released on February 27. Net profit  rose 200% q-o-q or 162% y-o-y to RM167 million. Revenue rose 41% q-o-q or 142% y-o-y to RM231 million. Profits rose q-o-q due to (1) the change in sales mixed and percentage of completion of the existing main on-going projects of the Group, especially in Johor Bahru and Klang and (2) the gain of approximately RM112.7 million from the fair value adjustment of investment properties. If the latter extraordinary one-off gain were excluded, KSL's net profit would be lowered to RM54 million (or a slight drop from RM56 million reported in QE30/9/2016.


Table: KSL's last 8 quarterly results


Graph: KSL's last 49 quarterly results

Valuation

KSL (at RM1.28 yesterday) is now trading at a trailing PER of 4.1 times (based on last 4 quarters' EPS of 31 sen). If we excluded the huge gain from fair value adjustment in QE30/9/2016, the last 4 quarters' EPS would drop to 20 sen and the trailing PER would rise to 6.4 times. At either PERs, KSL is deemed fairly valued.

Technical Outlook

KSL has broken above its long-term downtrend line, RR at RM1.05 in early February. Its immediate support & resistance will come from the horizontal lines at RM1.20 & RM1.35 respectively.
 

Chart: KSL's monthly chart as at Mar 8, 2017 (Source: Shareinvestor.com)

Conclusion

Based on satisfactory financial performance, fair valuation & bullish technical outlook, KSL's rating is revised from a HOLD to a BUY ON WEAKNESS.

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Malton: Next Upleg Coming

Malton broke above its intermediate downtrend line, SS at RM0.63 in October last year. It then rallied to a high of RM0.78 before it pulled back to its 10-week SMA line at RM0.65 in early January this year. Now Malton is rising again. Indicators are fairly positive: MACD is now in positive territory; and ADX is poised to breach the 20 mark.

As Malton approaches its October 2016 high of RM0.78 (a resistance level), we should be looking out for either an upside breakout of that resistance (which may lead to a sharp rally) or a failed test and pullback. If the latter developed, Malton could provide a good entry at about RM0.75. Currently, Malton is at RM0.76.


Chart 1: Malton's weekly chart as at Feb 2, 2017_9.30 (Source: MalaysiaStock.Biz)

The chart of Malton-WB is consistent with that of the share. It could be a good proxy to ride this play. Currently, Malton-WB is at RM0.195. Good entry is at RM0.17.   


Chart 2: Malton-WB's weekly chart as at Feb 2, 2017_9.27 (Source: MalaysiaStock.Biz)

Note:
I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

MKH: Earnings Soared (Updated)

Result Update

For QE30/9/2016, MKH's net profit rose 34% q-o-q or 107% y-o-y to RM50 million while revenue rose 43% q-o-q or 16% y-o-y to RM404 million. Profit before taxation rose y-o-y mainly contributed by the property and construction division from its on-going and new development projects and the turnaround in the plantation division from a loss before tax of RM31.1 million (included unrealized foreign exchange losses of RM17.7 million) in QE30/9/2015 to a profit before tax of RM12.7 million (included unrealized foreign exchange gains of RM7.4 million). PBT improved q-o-q mainly due to

mainly due higher profit contribution from property and construction division.

Table: MKH's last 10 quarterly results


Graph: MKH's last 15 quarterly results

Valuation

MKH (closed at RM2.82 last Friday) is now trading at a trailing PER of 5.8x (based on last 4 quarters' EPS of 48.9 sen). In addition to being very attractively priced at a low PER, MKH has a high growth - with earnings CAGR of 36% in the past 2 years. This gives the stock a PEG ratio of less than 1 time. This makes MKH an exceptional growth stock, trading like a cheap value stock.

(Updated: MKH has announced a dividend of 7 sen which will go ex on December 16. For more, go here)

Technical Outlook 

MKH is in an intermediate uptrend line with support at RM2.70. Immediate resistance will come from the overhead horizontal line at RM2.98-3.00.


Chart: MKH's weekly chart as at Nov 25, 2016 (Source: Chartnexus)

Conclusion

Based on satisfactory financial performance, attractive valuation and positive technical outlook, MKH is rate a STRONG BUY as a growth/value stock.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

Matrix: Earning Dipped From Selling Lower Margin Products

Result Update

For QE30/9/2016, Matrix's net profit dropped 11% q-o-q but rose 49% y-o-y to RM46 million. Its revenue rose 15% q-o-q or 85% y-o-y to RM224 million. Revenue rose q-o-q mainly due to increase in revenue recognized from the Group‟s property development activities. Profits dropped q-o-q mainly due to the change in product mix of the Group's development properties, as the Group launched more affordably-priced housing projects that cater to the current market demand.


Table 1: Matrix's last 8 quarterly P&L


Graph 1: Matrix's last 15 quarterly P&L

Valuation

Matrix (closed at RM2.48 yesterday) is now trading at a trailing PER of 7.7 times (based on last 4 quarters' EPS of 32.1 sen). Its price to book is at 1.48 times (based on NTA of RM1.68 per share as at 30/9/2016). Matrix paid out dividend totaling 14.65 sen for the past 4 quarters, which translates into a DY of 5.9%. Overall, Matrix is deemed fairly valued.

Technical Outlook

Matrix had a strong uptrend from its listing in June 2013 to October 2014 (see uptrend line, Sa-Sa). Since then, it has been moving in a sideways manner. Nevertheless, the stock has formed a more gradual uptrend line (either SS or S1-S) with support at RM2.45. If this new uptrend line holds, Matrix may continue to rise in the near term.


Chart 1: Matrix's monthly chart as at Nov 15, 2016 (Source: Shareinvestor.com)\

Conclusion

Based on satisfactory financial performance, fairly valuation & mildly bullish technical outlook, Matrix could be a good stock for long-term investment.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

IBhd: Good Earnings Reported

Result Update

For QE30/9/2016, IBhd's net profit rose 53% q-o-q or 162% y-o-y to RM22.4 million while revenue rose 31% q-o-q or 106% y-o-y to RM114 million. The better performance in both the revenue and profit was mainly due to higher revenue recognition of on-going projects for the Property Development segment as well as higher revenue and profit before tax for the Leisure segment.


Table: IBhd's last 8 quarterly P&L


Chart 1: IBhd's last 13 quarterly P&L

Valuation

I-Bhd (closed at RM0.61 yesterday) is now trading at a trailing PER of 9.4x (based on last 4 quarters' EPS of 6.53 sen). At this PER, I-Bhd is deemed fairly valued.

Technical Outlook

IBhd will soon test the strong resistance from the horizontal line at RM0.63. Looking at the charts for IBhd-LB & IBhd-WA, I believe that there is a fairly good chance that IBhd will soon break above this horizontal line.


Chart 2: I-Bhd's weekly chart as at Oct 24, 2016 (Source: Chartnexus)


Chart 3: I-Bhd-LB's weekly chart as at Oct 24, 2016 (Source: Chartnexus)


Chart 4: I-Bhd-LB's weekly chart as at Oct 24, 2016 (Source: Chartnexus)

Conclusion

Based on good financial performance and fair valuation, I-Bhd could be a good stock to consider for long-term investment. Its near-term outlook may still be neutral as the stock has not yet launched into its next upleg.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision. 

MATRIX: At a New High

Background

Matrix Concepts Group Berhad ('Matrix') is involved in property development, education, clubhouse operator and construction. It was listed on Bursa Malaysia in June 2013. Currently the group has 2 major on-going township developments, namely Bandar Sri Sendayan in Seremban, Negeri Sembilan and Bandar Sri Impian in Kluang, Johor.

Matrix's Sendayan Icon Park, Seremban and Taman Seri Impian, Kluang

Technical Outlook
MATRIX broke above its all-time high of RM2.56 last week. With this upside breakout, Matrix will recommence its uptrend which dates back to September 2013.


Chart 1: Matrix's weekly chart as at Oct 5, 2016 (Source: Chartnexus)

Recent Financial Performance

Matrix's last quarterly results was in QE30/6/2016, which shows its net profit rose 8% q-o-q or 74% y-o-y to RM52 million. Its revenue is mixed- down 7% q-o-q but rose 63% y-o-y to RM196 million.


Table: Matrix's last 8 quarterly P&L


Chart 2: Matrix's last 14 quarterly P&L

Valuation

Matrix (closed at RM2.63 yesterday) is now trading at a trailing PER of 9.1 times (based on last 4 quarters' EPS of 29 sen). Its price to book is at 1.62 times (based on NTA of RM1.62 per share as at 30/6/2016). Matrix paid out dividend totaling 19.4 sen n FY2016, which translates into a DY of 7.4%. Overall, Matrix is deemed fairly valued.

Conclusion

Based on satisfactory financial performance, fairly valuation & bullish technical outlook, Matrix could be a good stock for a trading BUY.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.

UOADEV: An Attractive Property Developer

Background

UOA Development BHD (‘UOADEV’) is involved in property development of residential, commercial and industrial properties. It has developed a few large projects, the most famous being the Bangsar South development.  


via, Company's website

Historical Financial Performance

The company's top-line and bottom-line show steady growth over the past 5 years.

 
Chart 1: UOADEV's last 10 Half-yearly result

Recent Financial Result

In QE30/6/2016, UOADEV's net profit rose 29% q-o-q but dropped marginally y-o-y to RM124 million while revenue rose 47% q-o-q but dropped 25% y-o-y to RM295 million. Net profit rose q-o-q due to the contribution from Desa Green serviced Apartments which were completed during the quarter.


Table: UOADEV's last 8 quarter's result


Chart 2: UOADEV's last 10 quarter's result

Financial Position

As at 30/6/2016, UOADEV's financial position is deemed satisfactory. Its current ratio stood at 2.4x while gearing ratio stood at 0.38x.

Valuation

UOADEV (closed at RM2.57 yesterday) is now trading at a trailing PER of 8.6 times (based on last 4 quarterly EPS of 30 sen). At that PER, UOADEV is deemed fairly attractive. Its dividend payment rose to 15 sen for FY2015 from 13 sen in FY2014. If dividend payable remains unchanged, the Dividend yield for the stock is at a commendable 5.8%.

Technical Outlook

UOADEV appears to have broken above the line connecting the previous 2 peaks at RM2.50. This upside breakout could lead to an acceleration in its uptrend.


Chart 3: UOADEV's weekly chart as at Sep 8, 2016 (Source: Chartnexus)

Conclusion

Based on good financial performance, satisfactory financial position, attractive valuation & bullish technical outlook, UOADEV could be a good stock for a TRADING BUY.

Note:

I hereby confirm that I do not have any direct interest in the security or securities mentioned in this post. However, I could have an indirect interest in the security or securities mentioned as some of my clients may have an interest in the acquisition or disposal of the aforementioned security or securities. As investor, you should fully research any security before making an investment decision.