Stock Name: AZRB
Company Name: AHMAD ZAKI RESOURCES BHD
Company Name: AHMAD ZAKI RESOURCES BHD
| Research House: ALLIANCE | Price Call: BUY | Target Price: 1.22 |
Showing posts with label AZRB. Show all posts
Showing posts with label AZRB. Show all posts
July 30, 2013
March 1, 2012
AZRB (FV RM0.91 - NEUTRAL) FY11 Results Review: Cautious on Subpar FY11
Stock Name: AZRB
Company Name: AHMAD ZAKI RESOURCES BHD
Company Name: AHMAD ZAKI RESOURCES BHD
| Research House: OSK | Price Call: HOLD | Target Price: 0.91 |
Ahmad Zaki's (AZRB)FY11 earnings of RM12.1m fell short of our expectations and only met 58.9% of our full-year estimates on theback of weakness in both its construction and bunkering divisions. With that,we are turning slightly cautious on its future prospects and hence, we arelowering our FY12 and FY13 core earnings forecasts by 6.0% and 3.1%respectively. Downgrade to NEUTRAL and our FV now stands at RM0.91 based on anunchanged FY12 PER of 10x.
Significantly belowestimates. AZRB's FY11 revenue surged 23.7% y-o-y to close at RM533.7m, driven by higher contributionfrom its construction division which registered a 25.8% jump to RM469.1m.Nonetheless, its core earnings of RM12.1m (+>100% y-o-y due to losses inFY10) still fell short of our expectations by coming in at 58.9% of our full-year estimates. Our estimates have previously accounted for abetter showing from its bunkering division, which actually registered a dip of30.2% at the EBIT level, as well as some margins improvement for itsconstruction segment, which also did not materialize. On a quarterly basis,4QFY11 topline and core earnings came in at RM141.0m and RM2.9m respectively,dragged down by its bunkering division's subpar performance.
Subpar margins themain concern. On a positive note, AZRB is currently sitting on a comfortableorderbook of RM1,978m with the bulk ofit coming from the RM765m v6 MRT package, RM160m University Darul Iman Package3 building works and construction of the RM413m International IslamicUniversity Malaysia Teaching Hospital in Kuantan. Nonetheless, we are turningcautious on its execution track record in view of its below-averageconstruction margins as well as early indications of potential weakness in itsbunkering division. With that, we are downgrading our core earnings forecastsby 6.0% for FY12 and 3.1% for FY13.
Downgrade to NEUTRAL.All in all, we are taking a more conservative stance on AZRB for now given thedisappointing set of results, which webelieve could point to further executionrisks in light of the volatility of its past earnings. Hence, we downgrade ourcall from Trading Buy to NEUTRAL with our FV now standing at RM0.91 based on anunchanged FY12 PER of 10x.
Source: OSK188
December 1, 2011
OSK maintains "neutral " call on AZRB
Stock Name: AZRB
Company Name: AHMAD ZAKI RESOURCES BHD
OSK Research Sdn Bhd has maintained its "neutral" call on Ahmad Zaki Resources Bhd (AZRB) following the company's lower
nine-months financial year 2011 earnings of RM9.1 million.
In a research note today, OSK Research said AZRB's lower earnings was way below its expectations.
"The disappointment was mainly due to the low margin jobs being recognised for the three quarter financial year 2011 and a higher effective tax rate," it said.
Nevertheless, OSK Research noted that AZRB has a strong order book to help drive revenue in financial year 2012.
The research firm remain cautious on AZRB's execution and hence, its "neutral" rating. -- Bernama
Company Name: AHMAD ZAKI RESOURCES BHD
| Research House: OSK | Price Call: HOLD | Target Price: 0.62 |
OSK Research Sdn Bhd has maintained its "neutral" call on Ahmad Zaki Resources Bhd (AZRB) following the company's lower
nine-months financial year 2011 earnings of RM9.1 million.
In a research note today, OSK Research said AZRB's lower earnings was way below its expectations.
"The disappointment was mainly due to the low margin jobs being recognised for the three quarter financial year 2011 and a higher effective tax rate," it said.
Nevertheless, OSK Research noted that AZRB has a strong order book to help drive revenue in financial year 2012.
The research firm remain cautious on AZRB's execution and hence, its "neutral" rating. -- Bernama
March 11, 2011
AZRB - OSK Research maintains Buy on AZRB, TP RM1.29
Stock Name: AZRB
Company Name: AHMAD ZAKI RESOURCES BHD
Research House: OSK
KUALA LUMPUR: OSK Research is maintaining a Buy on AHMAD ZAKI RESOURCES BHD [] (AZRB) with a target price of RM1.29 but cautioned that risks remained.
AZRB announced on Thursday, March 10 it had won a RM145.4m contract from the Works Ministry. The job encompasses the remaining works for the East Coast Expressway Phase 2 in Terengganu.
OSK Research said on Friday, March 11 that as YTD job wins are still within its expectations, it left its estimates unchanged.
'Nonetheless we do highlight that a potential provision for Bakun would be the key risk to our estimates. Management continues to guide that no provisions for Bakun will be made.
'Despite this risk, our BUY rating on AZRB is maintained given AZRB's undemanding valuations at 6.6x FY11 earnings and 5.8x FY12. Our RM1.29 TP is based on 10x FY11 earnings which represents the low end of our PER target for small cap contractors within our coverage,' it said.
Company Name: AHMAD ZAKI RESOURCES BHD
Research House: OSK
KUALA LUMPUR: OSK Research is maintaining a Buy on AHMAD ZAKI RESOURCES BHD [] (AZRB) with a target price of RM1.29 but cautioned that risks remained.
AZRB announced on Thursday, March 10 it had won a RM145.4m contract from the Works Ministry. The job encompasses the remaining works for the East Coast Expressway Phase 2 in Terengganu.
OSK Research said on Friday, March 11 that as YTD job wins are still within its expectations, it left its estimates unchanged.
'Nonetheless we do highlight that a potential provision for Bakun would be the key risk to our estimates. Management continues to guide that no provisions for Bakun will be made.
'Despite this risk, our BUY rating on AZRB is maintained given AZRB's undemanding valuations at 6.6x FY11 earnings and 5.8x FY12. Our RM1.29 TP is based on 10x FY11 earnings which represents the low end of our PER target for small cap contractors within our coverage,' it said.
February 2, 2011
AZRB - OSK Research maintains Buy on AZRB, TP RM1.55
Stock Name: AZRB
Company Name: AHMAD ZAKI RESOURCES BHD
Research House: OSK
KUALA LUMPUR: OSK Research is maintaining its Buy call on AHMAD ZAKI RESOURCES BHD [] (AZRB) at a target price of RM1.55 based on 12 times FY11 earnings.
AZRB announced on Monday, Jan 31 it had won a RM125 million contract for a public housing job in Terengganu.
OSK Research said on Wednesday, Feb 2 the management was positive on RM500 million to RM600 million in new wins this year. The potential jobs include packages of the East Coast Expressway (RM140 million) and private finance initiative campus job (RM400 million).
'The approved sale of EPIC at RM112 million would move AZRB into a net cash position. No changes to our earnings estimates as the job wins are still within our RM400 million replenishment target. Maintain BUY at a RM1.55 TP based on 12x FY11 earnings,' it said.
Company Name: AHMAD ZAKI RESOURCES BHD
Research House: OSK
KUALA LUMPUR: OSK Research is maintaining its Buy call on AHMAD ZAKI RESOURCES BHD [] (AZRB) at a target price of RM1.55 based on 12 times FY11 earnings.
AZRB announced on Monday, Jan 31 it had won a RM125 million contract for a public housing job in Terengganu.
OSK Research said on Wednesday, Feb 2 the management was positive on RM500 million to RM600 million in new wins this year. The potential jobs include packages of the East Coast Expressway (RM140 million) and private finance initiative campus job (RM400 million).
'The approved sale of EPIC at RM112 million would move AZRB into a net cash position. No changes to our earnings estimates as the job wins are still within our RM400 million replenishment target. Maintain BUY at a RM1.55 TP based on 12x FY11 earnings,' it said.
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