Saturday 26 April 2014

Tambun: What To Expect From Its FY14Q1?

In my latest write-up on Tambun Indah, I mentioned at the end of that article that Tambun's FY14Q1 financial result will be released in May.

Actually the date is incorrect, as the result is scheduled to be released on 28th April 2014 according to its website. The corresponding period's result last year was also released in April.

What to expect from Tambun's upcoming quarterly result?

Of course, for the first time it will include the full quarter contribution from its remaining shares of Pearl City acquired in end of Nov last year. Last quarter it only contributed for one month.

In its previous quarter FY13Q4 result, net profit & PATAMI stood at RM28.2mil & RM22.1mil respectively. I expect more than 95% of net profit will be bagged by Tambun later as minority interest in projects such as Kelisa Residence (OC expected in June14) and Permai Residence (just launched) should not contribute too much.

Nevertheless, it is important to note that there were quite a lot of projects completed in the end of last year, and perhaps FY14Q1 may not produce record breaking revenue, depends on the timing of billings.

       Tambun: Listed on 18th Jan 2011 at IPO 70sen

As for the recent shares disposal by Tambun's major shareholder Nadayu, for me there is absolutely nothing to worry about.

Since the day Nadayu decided to sell all its remaining stake in Pearl City to Tambun, it is expected that sooner or later Nadayu will cash out the 55 million shares it obtained from the deal at RM1.30 per share. It needs cash to run its own property development business.

Those shares were sold in the region of RM1.90 - RM2.00, which is a 50% gain in half a year for Nadayu, not bad indeed.

Anyway, I still think that Tambun can better its FY13 financial performance. I will set my own target price after the release of FY14Q1 result next Monday.

I predict Tambun to deliver RM100mil PATAMI for its FY14, and thus EPS of 25.3sen or a preliminary fair value of RM2.53 given a PE ratio of 10x.

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