In line with the ELKDESA’s strategic direction to grow its hire purchase portfolio amidst economic recovery environment, the group increased its hire purchase receivables 19.4% YoY and 7.5% QoQ to RM560.3m. Liabilities wise, the group’s bank borrowings increased by 51.9% YoY to RM198.6m as a result of higher drawdown of block discounting facilities to support the increased hire purchase receivables.
Read MoreBlended ASP declined -8.3% QoQ in 3QFY23. Given the intense market competition, we reckon that ASP may remain under pressure, before mild signs of revival towards mid-to-end 2023 as purchasers’ inventory levels from previous stockpiling activities dialed down and exit of new entrants from recent years.
Read MoreLocal building contractor specialising in design & build method and incorporates a digital management application which improves business operation efficiency. VLB is valued by pegging its FY23f core EPS of 3.6 sen to PE of 12.0x, leading to a FV of RM0.43.
Read MoreMoving forward, we are cautiously optimistic on the office space outlook over the near term as we expect the market sentiment to remain soft amid rising inflationary pressures on the global economy. Besides, we expect an increase in property operating expenses due to electricity tariff hike effective 1st January 2023 to 30th June 2023.
Read MoreOperating 12 furnaces. Following the aforementioned conversion, we gather that OMH continues to operate 12 out of 16 furnaces. Coming into FY23f, we reckon that OMH will be able to deliver a total production of 360,000 tonnes/pa. Already, 9M22 saw total production of 281,341 tonnes (106,023 FeSi and 175,318 Mn) which accounts to 78.2% of our assumption of 360,000 tonnes.
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