Saturday, August 16, 2014

ORNA 2Q14 Result +43% YoY



  1. 1H14 EPS jumped 43% to 6.6 sen as revenue jumped 20% YoY to RM140.5m. The good revenue was due to higher sales volume resulting from strong orders from customers.
  2. Book value increased to RM1.69 from RM1.63 on Dec-2013. The increase is mainly come from the better EPS of 6 sen. Current share price of RM1.23 is still 27% discount to the full book value of RM1.69.
  3. Cash amount surge 50% to RM15.7m. This is on the back of Operating Cash Flow (RM7.8m), Cash Flow Investing (RM5.8m) and Cash Flow Financing (RM1.6m).
  4. Theoretical Fair Value of RM1.40 based on 10x FY15 Fwd. PE. Assuming ORNA can deliver same performance for 2H14, its FY14 EPS should be 13.2 sen. For FY15, also assume a conservative earnings growth of 5% to arrive at EPS of 13.9 sen. Based on 10x Fwd PE (similar to Small Cap PE), this stock is easily worth RM1.40 or 14% upside from current price of RM1.23.

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