2Q14 earnings surged 90% to
RM1.31m
Last
Friday on 30-Jan-2015, FIBON announced its 2Q15 earnings which saw its net
profit jumped 90% YoY to RM1.31m. The increase in 2Q15 is due to higher profit
margin generated from its manufacturing products. Note that its 2Q15 PBT Margin
has improved to 47.1% against 2Q14’s 28.5%.
Strong net cash of RM23.03m
or 23.5 sen per share.
With
RM23.03m cash and zero debt, FIBON balance sheet is very strong at RM23.03m net
cash or 23.5 sen cash per share. Compared to end-FY14 (ending May), net cash
increased by 4%. Compared to its share price of 48.5 sen currently, 48% of the
share price is in cash.
Cash flow control is good.
For 1H15:
Operating Cash Flow is RM3.04m, Capex RM0.15m, Financing Cash Flow RM0.0m.
Effectively, the Company generated extra RM1.0m in 1H15 to RM23.03m.
First contribution from
factoring business likely to cause FY15 earnings be better than FY14
FIBON has for the first time added “Financing Income” as
its new segment in its 1Q15 quarterly report. Although the segment is still
making small loss of RM11k in 1H15, this factoring business will likely support
the manufacturing division earnings and margin as its business portfolio of
customers expand. Recall that FIBON secured the factoring business in Aug 2013.
For more information on how factoring business work, http://www.investopedia.com/terms/f/factor.asp
FIBON theoretically worth
64.5 sen or 33% UPSIDE
|
Items
|
Value (RM m)
|
|
Current
business valued at 10x PE of FY14 earnings
|
40.0
|
|
Net Cash
|
23.0
|
|
Total Value
|
63.0
|
|
No of
shares
|
98
|
|
Value Per Share (sen)
|
64.5
|
