Showing posts with label HSL. Show all posts
Showing posts with label HSL. Show all posts
May 22, 2015
March 2, 2015
October 28, 2013
HSL - Water pump station contract in Sarawak
Stock Name: HSL
Company Name: HOCK SENG LEE BHD
Company Name: HOCK SENG LEE BHD
| Research House: MIDF | Price Call: HOLD | Target Price: 2.01 |
October 2, 2013
HSL - First job in 2H13
Stock Name: HSL
Company Name: HOCK SENG LEE BHD
Company Name: HOCK SENG LEE BHD
| Research House: MIDF | Price Call: HOLD | Target Price: 1.80 |
April 15, 2013
February 28, 2013
January 14, 2013
November 29, 2012
November 8, 2012
March 7, 2012
HSL (BUY) - Samariang land bank coup
Stock Name: HSL
Company Name: HOCK SENG LEE BHD
Company Name: HOCK SENG LEE BHD
| Research House: HLG | Price Call: BUY | Target Price: 2.21 |
HSL (BUY)
Samariang land bank coup
Entered into a S&P Agreement with Projek Bandar Samariang for thepurchase of a 275.5 acre land in Kuching's northern township of Samariangfor a total cash consideration of RM25.5m, equivalent to ~RM2.10/sq ft. Thelatest acquisition will enlarge HSL's existing land bank to a total of 890acres.
We belief that it will do well due to the positive spill over effectfrom Samariang Aman. The latest land deal will ensure continuity in HSL'sproperty launches in Samariang area.
GDV is estimated to be worth ~RM700m and the development is expected tocommence in 2013 and will span over a development period of 6 to 8 years.
The acquisition price of ~RM2.10/sq ft looks attractive compared to themarket price of ~RM5/sq ft for the area. Overall, land cost-to-GDV ratio is~3.6%, hence increasing the development's feasibility and success rate as wellas profitability.
By assuming a 10% discount rate over 7-years and 25% net profit margin,Samariang Aman 3 will translate to 16 sen/share for HSL.
Forecasts remain unchanged, hence maintain TP of RM2.21 based on12x average FY12 and FY12 earnings.
Source: HLIB Research 7 March 2012
HSL (FV RM1.99 - BUY) Corporate News Flash: Buys Land For New Township
Stock Name: HSL
Company Name: HOCK SENG LEE BHD
Company Name: HOCK SENG LEE BHD
| Research House: OSK | Price Call: BUY | Target Price: 1.99 |
Details on the land. The 275.5 acres is part of a piece of leasehold land in Bandar Samariang Township in Kuching, Sarawaktotaling 2,795 acres. Located in therapidly expanding northern part of Kuching City and a 20-minute drive from the city centre, Bandar Samariang is an establishedtownship with some 5,000 homes and an estimated population of 25,000. The leaseon the land expires on 8 April 2098.
Samariang Aman 3 onits way. With the acquisition, HSL's landbank will swell to 890 acres.According to management, the land is earmarked for a mixed commercialand residential development called Samariang Aman 3, which is a continuation of its SamariangAman and Samariang Aman 2 developments. The proposed township will have about 1,500 landed residential homes comprising amix of semi-detached, quadruplex and terrace houses, 2,000 units of affordablehouses and 40 units of commercialshophouses. Spanning a development period of 6 to 8 years, the project as awhole is valued at a GDV of RM700m. Its initial launch is expected to takeplace as soon as 2014,.
Likely to be Internally funded. We believe theacquisition will be likely be funded through HSL's RM183.7m cash pile as ofDec 2011, which translates into an appealing RM0.32/share. With zero borrowings so far, theacquisition is unlikely to strain the company'sbooks.
BUY. While wemake no changes to our FY12 and FY13 forecasts at this juncture given that anycontribution from the proposed Samariang Aman 3 project would likely come in onlyby FY14, we continue to like HSL's strong execution track record of leveragingon its marine engineering expertise. Besides, the company is also the best proxy to Sarawak's construction play. Note that early this week, 2 South Koreancompanies -Dongbu Metal and Asia Cement' made a commitment to invest a combined USD650m in the Samalaju Industrial Park in Bintulu. That said, we continue to expectmore contracts to flow from SCORE as we believe that there may be apotential revival of infrastructure projects in this region in therun-up to the national polls. Hence, we maintain our BUYcall, at an unchanged FV of RM1.99, pegged at 12x FY12 PER.
Source: OSK188
February 29, 2012
Hock Seng Lee: Maintain Buy - Hock Seng Lee
Stock Name: HSL
Company Name: HOCK SENG LEE BHD
Maintain Buy. Results were in line, with 2011 net profit of RM87m (+19% YoY) spot-on our forecast. Near-term earnings visibility is good, with its outstanding order book of RM1.1b while sizeable job wins would provider greater growth visibility. We maintain our earnings forecasts for now, which are still short of management's internal targets. We remain upbeat on potential sizeable job wins this year, which should re-rate the stock. Our target price is pegged to 12x current year earnings.
Maybank Research 29 Feb 2012
Click here for full report
Company Name: HOCK SENG LEE BHD
| Research House: MAYBANK | Price Call: BUY | Target Price: 2.10 |
Maintain Buy. Results were in line, with 2011 net profit of RM87m (+19% YoY) spot-on our forecast. Near-term earnings visibility is good, with its outstanding order book of RM1.1b while sizeable job wins would provider greater growth visibility. We maintain our earnings forecasts for now, which are still short of management's internal targets. We remain upbeat on potential sizeable job wins this year, which should re-rate the stock. Our target price is pegged to 12x current year earnings.
Maybank Research 29 Feb 2012
Click here for full report
Hock Seng Lee - Results in line; cash and share dividend surprise on the upside BUY
Stock Name: HSL
Company Name: HOCK SENG LEE BHD
Company Name: HOCK SENG LEE BHD
| Research House: AMMB | Price Call: BUY | Target Price: 2.65 |
We maintain BUY on Hock Seng Lee (HSL), with an upward revisedsum-of-parts-derived fair value of RM2.65/share (vs. RM2.44/share previously),which includes a PE of 9x against its 3-year average forward earnings for itsconstruction division.
We have rolled forward our valuation years to FY12-FY14. HSL'snet profit of RM87mil for Y11 (+19% YoY) came in within expectations ' at amere 1ppt above our forecast and 1ppt below consensus. We introduce FY14F netprofit at RM137mil (+10% YoY).
No major surprises could be gleaned from the full-yearresults, except for a higher-than-expected dividend as well as an earlier-than-expected distribution oftreasury shares.
It proposed a final dividend of 1.8 sen/share and a special dividendof 0.6 sen/share, bringing the total for the full year to 3.6 sen/share, vs. 3sen/share (excluding treasury distribution) for FY10. We had expected dividendto be maintained at 3 sen/share.
With the latest dividend, the net payout ratio is maintainedat 17% as it was the previous year. We now assume a 17% net payout ratio forFY12F-FY14F, translating into an annual GDPS of between 4.4 sen and 5.6 sen, oryields of 2.7%-3.4% at the current price.
For the share dividend, it will distribute one treasuryshare for every 50 shares held (totalling nearly 11mil treasury shares) ' equivalentto 3.2 sen/share at RM1.60/share. This would be the second time in as manyyears that HSL is distributing its treasury shares, with the first in FY10 ofthe same ratio. After the latest distribution, over 24mil shares would remainin treasury. The share dividend's ex- and entitlement dates have been fixed for26 and 28 March 2012, respectively.
HSL maintained its growth momentum in 4QFY11, with a net profitof RM26mil (+21% YoY; +16% QoQ). Crucially, operating margin of theconstruction division was maintained at above 20% for 4QFY11 and the full year,while better margins also aided the property division in view of fewer launchesand sales.
HSL currently has RM1.7-RM1.8bilbil worth of jobs in hand,of which RM1.1bil is outstanding ' with plenty more projects within Sarawak'sSCORE up for grabs.
It is activelyseeking opportunities in the power sector and it may soon secure a RM250mileducation facility in Mukah. The remaining phases (worth RM1.7bil) of theKuching central sewerage project are also up for grabs this year, with the RM452milphase one currently being carried out by HSL. HSL remains as one of the primaryproxies to the rapid pace of developmenttaking shape in Sarawak.
Source: AmeSecurities
HSL (BUY) - FY11 another record year
Stock Name: HSL
Company Name: HOCK SENG LEE BHD
Company Name: HOCK SENG LEE BHD
| Research House: HLG | Price Call: BUY | Target Price: 2.21 |
HSL (BUY)
FY11 another record year
- HSL posted another record earnings as FY11 earnings grew by 19% toRM87.3m (15.8 sen/share) beating streets' estimates slightly but 3% below ourforecast of RM90m.
- Net dividend of 1.8 sen/share declared. Hence, total FY11 dividendsdeclared was 2.7 sen/share. Also, 1-for-50 treasury share distributionannounced which works out to additional 3.3 sen/share at current share price ofRM1.65.
- Overall, the HSL has an outstanding order book of ~RM1.1bn, translatingto ~2.0x FY11's construction revenue and ~1.1x order book-to-market cap ratio.
- With the improved newsflow for the construction sector and potential inaward of SCORE projects picking up, we maintain our BUY call on HSL with a TPof RM2.21.
Source: HLIB Research 29 Feb 2012
February 28, 2012
HSL (FV RM1.99 - BUY) FY11 Results Review: Within Expectations
Stock Name: HSL
Company Name: HOCK SENG LEE BHD
Company Name: HOCK SENG LEE BHD
| Research House: OSK | Price Call: BUY | Target Price: 1.99 |
Hock Seng Lee's (HSL) FY11 earnings of RM87.3m were withinour expectations and consensus forecast, at 102.0% and 100.7% of the full-yearestimates respectively. It declared a special DPS of 0.6 sen on top of a final DPS of 1.8 sen, bringing its FY11 DPSto 3.6 sen. The group also declared a 1-for-50 distribution of treasury shares,which stood at 35.3m as of Jan 2012. Our positive stance remains as we see aburgeoning news flow from the SCORE region in the run-up to national polls.Hence, we maintain our BUY, at a marginally lower FV of RM1.99, based on anunchanged 12x FY12 PER.
Within estimates. HSL posted FY11 revenue of RM581.5m (+19.1%y-o-y), led by its construction division, for which revenue grew 22.2%, but this was partly mitigated by a lowercontribution from its property segment, which saw revenue drop 28% y-o-y to RM22.0mdue to the timing in the launch of new projects. EBIT, however, improved by a moremoderate 17.0% y-o-y as the increase in operating expenses, which we attributeto escalating building material prices, eroded margins. All in, its coreearnings rose 18.8% to RM87.3m on higher finance income and a marginal drop inits effective tax rate. On a quarterly basis, there were improvements across theboard, with 4QFY11 revenue and core earnings coming in at RM158.6m and RM26.1mrespectively.
Dividend surprise.The company declared a special DPS of 0.6 sen on top of a final DPS of 1.8 sen,bringing its FY11 DPS to 3.6 sen. Thisimplies a payout ratio of 21.7%, the highestpaid out since FY09, which is equivalent to a decent dividend yield of 2.2% forthe full year. The group also declared a 1-for-50 distribution of treasuryshares. Based on its last closing and existing share base, this implies anadditional 2.0% yield, bringing 2011 dividend yield to 4.2%. We see room formore dividend surprises going forward as the company's treasury shares willstill total 24.3m after the proposed exercise.
Potential revivalof SCORE. In mid-Feb, HSL secured aRM82m contract to construct the Balingian to Jalan Persekutan road in Sibu. With this job, we will continueto see the slow-moving onstruction projects in East Malaysia, particularly with in SCORE, finally gaining traction. We believe the company'sfortunes may turn in the run-up to the country's general election. No change to our FY12 and FY13 orderbook replenishmentestimates of RM400m and RM500m respectively for now.
BUY. Followingthe release of HSL's full year FY11 results, we are fine-tuning our model forbook-keeping purposes. As a consequence, our FY12 and FY13 EPS estimates are reviseddownwards marginally by 1.9% and 1.6% respectively. We maintain our BUY call onHSL, pegging its long term average 1-year forward PER at 12xbringing its FV to RM1.99.
Source: OSK188
February 14, 2012
HLIB Research 14 February 2012 (Tech; HSL; Traders Brief)
Stock Name: NOTION
Company Name: NOTION VTEC BHD
Stock Name: HSL
Company Name: HOCK SENG LEE BHD
Company Name: NOTION VTEC BHD
| Research House: HLG | Price Call: HOLD | Target Price: 2.03 |
Stock Name: HSL
Company Name: HOCK SENG LEE BHD
| Research House: HLG | Price Call: BUY | Target Price: 2.30 |
Technology: HDDs (Neutral)
Growth Neutralized
'''' Seagate was fortunate that all its factories in Thailand were fully operational and remain largely unscathed. Seagate's HDD shipment had surpassed WD in 2Q12.
'''' In the consumer market, weak demand in personal computers (PC) drags down the demand for HDD. According to preliminary results by Gartner, worldwide PC shipments totalled 92.2m units in 4Q11, a 1.4% decline qoq, muting the boost of holiday season sales.
'''' This negative outlook is partly due to the market preference of tablets, such as iPads substituting PC due to convenience and handy. In the recent CES in Las Vegas, we saw that PC makers begin to embrace ultrabook, thin laptop computers built with new Intel low-power chip and solid-state drive (SSD) instead of HDD.
'''' As for the enterprise market, HDD demand is forecasted to undergo growth in tandem with global spending on IT. Gartner predicted global IT spending would rise 3.7% in 2012 while Forrester Research expects 5.5% growth.
'''' SSD has set a solid footprint in HDD's space and raised doubts on HDD's future as the long term storage solution. While SSD remains considerably more costly, the flash-based storage devices are coming down in prices much faster compared to HDD. SSD is making a small scale in-road into the market in the form of hybrid hard drive (HHD), which is the combination of HDD and SSD.
'''' Despite expectations of modest demand growth, other negatives (input cost, FOREX and replacement by SSD) are likely to weight down share price performance.
'''' Notion (HOLD, TP: RM2.03) is our top pick for the sector due to its unique position, having diversified away from HDDs to the higher-margin Camera business.
''
HSL (BUY)
Kick starting 2012 with a road project
'''' HSL has secured a RM82.2m sub-contract from PN Construction S/B for a road project from Balingian to Jalan Persekutan, Sibu/Bintulu. The project is slated for completion in 1Q2014.
'''' By assuming a PAT margin of ~13%, the latest road project translates to ~1.9 sen/share for the company. Overall, we estimate that HSL has ~RM1.1bn in outstanding order book, translating to ~2.4x FY2010's construction revenue and ~1.1x order book-market cap ratio.
'''' Maintain BUY as we expect further exciting developments coming from the company. Our TP has been upgraded by 10% from RM2.09 to RM2.30 as we roll over our P/E multiple of 12x to average FY12 and FY13 earnings.
''
KLCI: Consolidation before trending higher again
'''' We remain cautiously optimistic of KLCI resuming its uptrend after a mild profit taking consolidation.
'''' If the index swing past last week's high of 1565 pts, then the index is likely to edge closer towards the our envisaged resistance targets near 1570-1580.
'''' Support levels are 1550, 1556 (5-d SMA) and 1540 (10-d SMA).
''
CANONE: Building its base
'''' At RM1.81, CANONE is trading at implied 6x P/E on adjusted EPS of 30.3sen (FIG#5). The pullback from RM2.24 appears to be at its tail end, as prices have been consolidating above the 61.8% FR, supported by its extremely oversold slow Stochastics. Further strong support can be found around RM1.68 (lower Bollinger band).
'''' Buyers may start to nibble when price approaches the RM1.70-1.80 territory to ride the technical rebound wave. Technical rebound targets are RM1.95 (76.4% FR), RM2.00 psychological barrier and RM2.24. Significant resistance is RM2.53 (123.6% FR). Cut loss below RM1.68 as it will fall back to refill the RM1.37-1.59 gap on 6 Jan.
Hock Seng Lee: Maintain Buy - First Valentine ' of the year
Stock Name: HSL
Company Name: HOCK SENG LEE BHD
Maintain Buy. Newsflow is improving and HSL's first job win for 2012 - a RM82.2m road construction sub-contract - has lifted its outstanding order book to RM1.08b (+8%). The stock still offers value at 9.7x 2012 earnings despite the share price having outperformed, up 30% year-to-date. We believe there is still upside potential for the stock, on the back of a pick-up in infrastructure construction activities in Sarawak this year. Maintain Buy with an unchanged RM2.10 target price.
Maybank Research 14 Feb 2012
Click here for full report
Company Name: HOCK SENG LEE BHD
| Research House: MAYBANK | Price Call: BUY | Target Price: 2.10 |
Maintain Buy. Newsflow is improving and HSL's first job win for 2012 - a RM82.2m road construction sub-contract - has lifted its outstanding order book to RM1.08b (+8%). The stock still offers value at 9.7x 2012 earnings despite the share price having outperformed, up 30% year-to-date. We believe there is still upside potential for the stock, on the back of a pick-up in infrastructure construction activities in Sarawak this year. Maintain Buy with an unchanged RM2.10 target price.
Maybank Research 14 Feb 2012
Click here for full report
February 8, 2012
Hock Seng Lee: Maintain Buy Take another look
Stock Name: HSL
Company Name: HOCK SENG LEE BHD
Maintain Buy. HSL's share price underperformed in 2011, falling 23% (+13% 2012-YTD). At current levels, the stock trades at 8.4x one-year forward PER, a level not seen since 2H 2009. Near-term earnings will be supported by a decent RM1b outstanding order book. We recommend that investors reposition for a pick-up in infrastructure construction activities in Sarawak. Maintain Buy with an unchanged RM2.10 target price, pegged to 12x 2012 earnings.
Click here for full report
Company Name: HOCK SENG LEE BHD
| Research House: MAYBANK | Price Call: BUY | Target Price: 2.10 |
Maintain Buy. HSL's share price underperformed in 2011, falling 23% (+13% 2012-YTD). At current levels, the stock trades at 8.4x one-year forward PER, a level not seen since 2H 2009. Near-term earnings will be supported by a decent RM1b outstanding order book. We recommend that investors reposition for a pick-up in infrastructure construction activities in Sarawak. Maintain Buy with an unchanged RM2.10 target price, pegged to 12x 2012 earnings.
Click here for full report
January 20, 2012
November 23, 2011
Hock Seng Lee: Buy
Stock Name: HSL
Company Name: HOCK SENG LEE BHD
Not spared from the slow order flows Shariah-compliant
Maintain Buy but on a lower target price. 9M11 net profit, at RM61m (+18% YoY), was a slight shortfall at 68% of our earlier full-yearforecast on slower-than-expected 3Q revenue recognition. We lower our 2011 net profit forecast by 4% and 2012-13 forecasts by 7-9%. Our 12x PER based target price on 2012 earnings is trimmed to RM2.10 (-9%). Valuations stay attractive at single-digit PERs as we continue to expect sizeable jobs to fuel the state's energy-driven industrialisation.
Maybank research (23 November 2011)
Click here for full report ''
Company Name: HOCK SENG LEE BHD
| Research House: MAYBANK | Price Call: BUY | Target Price: 2.10 |
Not spared from the slow order flows Shariah-compliant
Maintain Buy but on a lower target price. 9M11 net profit, at RM61m (+18% YoY), was a slight shortfall at 68% of our earlier full-yearforecast on slower-than-expected 3Q revenue recognition. We lower our 2011 net profit forecast by 4% and 2012-13 forecasts by 7-9%. Our 12x PER based target price on 2012 earnings is trimmed to RM2.10 (-9%). Valuations stay attractive at single-digit PERs as we continue to expect sizeable jobs to fuel the state's energy-driven industrialisation.
Maybank research (23 November 2011)
Click here for full report ''
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