Showing posts with label TRC. Show all posts
Showing posts with label TRC. Show all posts
March 2, 2015
September 11, 2014
June 27, 2014
May 9, 2014
April 5, 2014
April 26, 2013
March 26, 2013
March 6, 2013
4Q12 results review
Stock Name: TRC
Company Name: TRC SYNERGY BHD
Company Name: TRC SYNERGY BHD
| Research House: NETRESEARCH | Price Call: BUY | Target Price: 0.70 |
November 27, 2012
November 9, 2012
September 5, 2012
2Q2012 results review
Stock Name: TRC
Company Name: TRC SYNERGY BHD
Company Name: TRC SYNERGY BHD
| Research House: NETRESEARCH | Price Call: BUY | Target Price: 0.80 |
August 15, 2012
August 6, 2012
March 15, 2012
TRC - Secures RM36m new contract
Stock Name: TRC
Company Name: TRC SYNERGY BHD
TRC Synergy; Buy; RM0.75
Price Target: RM0.80; TRC MK
TRC Synergy (TRC) has received a Letter of Award from Kompleks Dayabumi Sdn Bhd for the proposed alteration and addition of construction works to existing Kompleks Dayabumi (Phase 2) for a contract sum of RM36m.
This represents TRC's first contract win for FY12F and accounts for 7% of our new order win assumption of RM500m. We expect margins to be at c.5-6% typical of building jobs.
The bigger catalyst remains the MRT project. TRC is one of 28 contractors short-listed to bid for elevated works of the Sungai Buloh-Kajang line worth RM12bn (elevated portion). It is present in all categories - elevated civil works, stations and depots - in both the open and bumiputera categories.
We maintain our BUY rating and TP of RM.80. This is pegged to 12x FY12F EPS, which is based on 25% discount to the sector average. TRC's RM1.3bn outstanding orderbook provides earnings visibility for 2-3 years.
Source: HwangDBS Research 15 March 2012
Company Name: TRC SYNERGY BHD
| Research House: HWANGDBS | Price Call: BUY | Target Price: 0.80 |
TRC Synergy; Buy; RM0.75
Price Target: RM0.80; TRC MK
TRC Synergy (TRC) has received a Letter of Award from Kompleks Dayabumi Sdn Bhd for the proposed alteration and addition of construction works to existing Kompleks Dayabumi (Phase 2) for a contract sum of RM36m.
This represents TRC's first contract win for FY12F and accounts for 7% of our new order win assumption of RM500m. We expect margins to be at c.5-6% typical of building jobs.
The bigger catalyst remains the MRT project. TRC is one of 28 contractors short-listed to bid for elevated works of the Sungai Buloh-Kajang line worth RM12bn (elevated portion). It is present in all categories - elevated civil works, stations and depots - in both the open and bumiputera categories.
We maintain our BUY rating and TP of RM.80. This is pegged to 12x FY12F EPS, which is based on 25% discount to the sector average. TRC's RM1.3bn outstanding orderbook provides earnings visibility for 2-3 years.
Source: HwangDBS Research 15 March 2012
TRC (FV RM0.84 - TRADING BUY) Corporate News Flash: Scores Maiden Job For 2012
Stock Name: TRC
Company Name: TRC SYNERGY BHD
Company Name: TRC SYNERGY BHD
| Research House: OSK | Price Call: TRADING BUY | Target Price: 0.84 |
Scores Maiden Job For2012
THE BUZZ
TRC Synergy announced that its wholly-owned subsidiary,Trans Resources Corporation SB, has received the Letter of Award from KompleksDayabumi SB for the construction and completion of the proposed alteration andaddition works to the existing Kompleks Dayabumi for a contract sum of RM36m.
OUR TAKE
Within expectations. This marks TRC's maiden contract for the year, and which we deem in line withour expectations, with our FY12 and FY13 orderbook replenishment targetremaining unchanged at RM500m per year. The deadline for this project was not disclosedbut we expect works to be completed within 18 months, judging from the quantum involved.
More from KV MRT.With the burgeoning news flow on the Klang Valley My Rapid Transit(KV MRT), we continue to see trading sentiment improve as we head into 2QCY12 onthe potential award of more packages on the elevated portion of the Sungai Buloh-Kajang(SBK) line. We understand from sources that at least 3 more MRT contracts arelikely to be dished out by April, which we understand will be for the stretchescovering Semantan-Seksyen 17, Sg Buloh-Kota Damansara as well as Bandar TunHussein Onn-Saujana Impian. We continue to believe that TRC is a strong contenderfor the elevated works as it is the only contractor that has been prequalified forall categories in both the open and bumiputra portions. Also, its ongoinginvolvement in the Kelana LRT-A extension means that it hasalready procured the required equipmentto carry out the job.
Revival of SCOREseems likely. On top of these, we expect to see a potential revival in theSarawak Corridor of Renewable Energy (SCORE). Although the flow of contracts inEast Malaysia has been sluggish, we believe it could finally gain traction,with SCORE in particular. Note that in late-Feb this year, the FederalGovernment allocated RM500m for the construction of a second port in Bintulu topropel Samalaju Industrial Park into a highly-developed and competitiveeconomic hub. Coincidentally, early this month, 2 South Korean companies havecommitted to invest a combined USD650m in the said industrial park. We understand that the approved investments inSCORE have now increased to RM32bn. All these developments jive in with ourview that there may be a turn in fortunes in the run-up to the widely expected general election as we see the current rulingBarisan Nasional coalition likely to win over Sabah and Sarawak voters via thecontracts, as the 2 states gave it a combined 54 parliamentary seats out of the140 the coalition secured nationwide.
TRADING BUY. Wemaintain our TRADING BUY call. Although we make no changes to our estimates atthis juncture, we are pegging a higher FY12 PER of 14x (from 12x previously) toour valuation in anticipation of a slew of contract flows for TRC over the next2-3 months in relation to the MRT packages as well as potential works in SCORE.Our new FV is RM0.84.
Source: OSK188
March 5, 2012
4Q11 results review
Stock Name: TRC
Company Name: TRC SYNERGY BHD
Company Name: TRC SYNERGY BHD
| Research House: NETRESEARCH | Price Call: BUY | Target Price: 0.90 |
March 1, 2012
TRC (FV RM0.79 - TRADING BUY) FY11 Results Review: 4Q Numbers a Letdown
Stock Name: TRC
Company Name: TRC SYNERGY BHD
Company Name: TRC SYNERGY BHD
| Research House: OSK | Price Call: BUY | Target Price: 0.79 |
TRC's FY11 topline and core earnings came in at RM391.3m and RM13.5m respectively.At a glance, the numbers seem to be in line with our estimate at 96.8% of thefull year forecast, but its 4QFY11 numbers were distorted by positive taxation.At the pretax level, its FY11 earnings would have fallen short of both streetand our forecasts at 68.3% and 81.6% of the full-year estimates respectively.That said, we are keeping our bullish view on the company as TRC is a strongcontender for the elevated works for the KV MRT SBK line. Hence, maintainTRADING BUY, at a slightly lower FV of RM0.79.
Disappointing 4QFY11. TRC's FY11 revenue amounted to RM391.3m(+3.9% y-o-y) while earnings stood at RM13.5m (-16.4% y-o-y). At a glance, thenumbers seem to be in line with our estimate, at 96.8% of our full year forecast. Nonetheless, its 4QFY11 numbers were distorted by a positive taxation amounting to RM2.8m.Excluding this, its FY11 pretax earnings would have fallen short of both streetand our forecasts at 68.3% and 81.6% of the full year estimatesrespectively. We attribute this to theslower-thanexpected progress at its LRT extension project, which we understandran into a snag due to delays in obtaining approvals from certainmunicipalities, as well as additional costs incurred during the defectliability period for some of its previous projects. By the same token, the4QFY11 numbers were generally weaker q-o-q and y-o-y, with an EBIT loss of RM3.3m.However, its 4QFY11 net earnings stood at RM2.6m, helped by positive taxation ofRM2.8m recognized during the quarter.
MRT play. Despitethe disappointing results, we continue to believe that TRC is a strong contenderfor the elevated works of the KV MRT SBK line as it is the only contractor thathas been prequalified for all categories in both the open and bumiputra portions. We estimate that thecompany's outstanding orderbook was worth RM1.5bn as of Dec 2011, with areplenishment target of RM500m p.a. for both FY12 and FY13.
TRADING BUY. No major changes to our core assumptions for now. Nonetheless, our FY12and FY13 core earnings forecasts are revised marginally downwards by 2.2% and 6.0% to RM25.2m and RM33.4mrespectively for book-keeping purposes following the company's full-year results. Maintain TRADING BUY, with our FV nowrevised lower to RM0.79, based on ourSOP valuation based on an unchanged 12x FY12 PER to its constructionearnings.
Source: OSK188
TRC Synergy (HOLD) - A poor finish but looking forward
Stock Name: TRC
Company Name: TRC SYNERGY BHD
Company Name: TRC SYNERGY BHD
| Research House: HLG | Price Call: HOLD | Target Price: 0.67 |
TRC Synergy (HOLD)
A poor finish but looking forward
- FY11 PATAMI contracted by 16% to RM13.5m (2.91 sen/share), making uponly 84% and 85% of HLIB and consensus expectations respectively.
- Ending on a limp' Unlike otherconstruction companies which saw a quarterly rebound in earnings, TRC sufferedan operational loss which was dragged down by defect liability works forcompleted projects. Although, TRC has a sizable order book, billings from theseprojects have yet to contribute meaningfully, as they are still in the infantstages.
- LRT status' Delays in executingthe LRT project remains the main culprit for the lacklustre performance.
- Looking forward' Overall, totaloutstanding order book remains sizable at ~RM1.34bn (see Figure #3),translating to ~3.4x FY11's revenue and ~4.0x order book-to-market cap ratio.
- TP reduced by 2.8% to RM0.67 based on SOP valuation. We changed ourvaluation methodology from P/E multiple as a substantial portion of TRC'svaluation is made up of its net cash position.
Source: HLIB Research 1 March 2012
January 9, 2012
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