Author: Icon8888 | Publish date: Fri, 29 Jan 2016, 10:58 AM
1. Introduction
I first wrote about Bintai on 20 July 2015.
http://klse.i3investor.com/blogs/icon8888/80059.jsp
I subsequently attended their AGM. Board of Directors provided explanations for the group's poor performance :-
(a) past losses were mostly due to bad debts; and
(b) The group will be adversely affected by strengthening of USD as certain of the construction materials will need to be imported. For example : boilers and air conditioning units.
The group subsequently reported a series of poor results. However, in the past few weeks, they announced several job wins. Is it time to buy ?
2. Balance Sheets
One of the most controversial thing about this company is its high gearing, which I discussed in my previous article :-
How is the group's balance sheet now ? Has it improved or deteriorated ?
It seemed that there is some improvement. Loans dropped by RM16 mil while cash increased by RM47 mil. That has caused net gearing to drop from 2.82 times to 1.56 times.
However, that is still considered high. We need to continue to monitor next few quarters to see whether the improving trend is sustainable.
3. P&L
The Directors explained in AGM that the main reason for past losses was bad debts.
Fair enough, the latest quarter saw a provision of RM11.3 mil. In FY2014 and FY2015, bad debts was RM6.5 mil and RM2.0 mil respectively.
Is bad debt really the main reason for poor performance ? Hmmm...
No comments:
Post a Comment