However, Weida posted a decent FY14Q1 financial results in which it registers RM9.9mil net profit but its revenue of RM88mil is the lowest in the last 4 quarters.
From its historical quarterly reports, Weida's quarterly earnings usually fluctuates a lot mainly due to timing of billings in work division. Thus, it may not produce similar profit like FY14Q1 for the whole FY2014.
The figures in the table above may not be accurate especially the PBT & PAT, as some figures are restated later.
- Manufacturing and sales of high-density polyethelene (HDPE) products, which are mainly water & sewerage related. Its products include water tank, pipes, septic tank, marine floats, chemical tanks, traffic equipment, playground component, litter bins, planter box etc.
- It has 5 manufacturing plants in Kuching (1983), Kota Kinabalu (1995), Nilai (1997), Miri, Tawau and one in Manila (2009).
- It manufactures and trades more than 200 types of polyethylene based products & building materials.
- Its products are designed in-house and patented.
- It is Malaysia largest HDPE products manufacturer.
- It also has a reclaimed rubber business.
- Telecommunication Towers: Construction, installation & maintenance of telecommunication towers and rent to telecom service providers via long term contracts. Started since 2005.
- Water & Wastewater Infrastructure: Design, construction and installation of water supply, storage infrastructure & treatment system, wastewater treatment system and others.
- Design and build biogas plants for livestock farming and palm oil mill effluent treatment.
- Building construction
- Sewerage treatment service, treatment and disposal of sludge service, underground mapping of buried utilities, investigation and rehabilitation of underground sewer and pipelines network.
- Newly added business segment. To contribute starting from FY2014.
- Recently disposed business segment which was started in 2007. It was still loss-making while being disposed.
|Other Works Rev||12||122.9||75.4||103.9|
|Other Works Profit||0.7||2.3||5.9||9|
Perhaps excited by the property venture, Weida's share price has reached all time high of RM1.75 recently. At this price, is it still worth to buy?
If it is not because of the one-time gain, I think Weida's profit after tax for FY2013 will be around RM20mil only, which is lower than its preceding year of RM24.1mil. Thus, EPS for FY13 will be about 15sen. At RM1.75, its PE ratio will be 11.7, which is not cheap for a company in industrial sector.
However, this does not factor in property development which should start to contribute in FY2014. With normally higher margin in property development plus organic growth of its other core businesses, Weida may give investors a surprise in FY2014.
Weida usually gives away 20-30% of its net profit as dividend. It paid the same 4sen (less tax) dividend yearly since year 2009. For FY2013, it pays 4sen dividend plus a special dividend of 1.5sen for its disposal gain. Without the special dividend, the net dividend of 3sen (after 25% tax) translates to a yield of just 1.7% at share price of RM1.75.
Anyhow, I am keen to know its Q2 results which will be announced next month, while waiting for a lower entry price.