Thursday, 22 May 2014
Huayang: Cross The Finishing Line In Style
The credibility of Huayang's management remain intact.
Six months ago, Huayang's highest quarterly revenue is slightly above RM100mil. To achieve a target annual revenue of RM500mil, Huayang still need RM318mil in the next 2 quarters.
Its management reassured investors that they are confident that the RM500k target revenue can be achieved.
Three months ago, it still need RM189mil revenue in its final quarter. It looks like mission impossible.
Now, its last ditch effort produces an astonishing final quarter revenue of RM198.3mil, together with a net profit of RM37.8mil. These are 53% & 92% higher QoQ respectively.
With that, the total revenue for FY14 reaches RM509.9mil, which is 24.8% higher than FY13's total revenie of RM408.7mil.
As a result, overall net profit of RM82.2mil for FY14 has increased 16.6% from RM70.5mil in FY13.
At the same time, its net gearing improves from 0.7x three months ago to 0.56x.
However, its latest unbilled sales drop slightly to RM808.1mil from RM838.3mil.
Can Huayang maintain its revenue above RM500mil for its FY15? I think it certainly need help from its upcoming RM1.5bil Puchong mixed development.
With 264 million shares, Huayang's actual EPS for FY14 (ended in Mac14) is 31.1sen. This means that at current share price of RM1.82, it is trading at a low PE of 5.8x.
Will there be bonus issue again in Sep/Oct this year?