Saturday, March 7, 2015

Financial results out for Colex, GMG Global, Hong Leong Finance, Petra Foods and Super Group

Collected my first dividend worth SGD 210 from F&N in February.

By the end of February, most of the Singapore listed-company's 2014 full-year results were out and I will review two of them quickly below.

Colex Holdings

Revenue for this waste disposal and cleaning services company increased 11.5% to SGD 58.7 million due to rollover effects of existing contracts at a higher value and new contracts secured. As a result, earnings less minority interest increased 56% to SGD 4.3 million. The improvement in net profit margins. 

Working on the recent last done price as well as a year ago, PE ratio remains stable year-on-year at around 8.2-8.3 times. PB increased to 1.4 times from 1.1 times in 2013. Yield has however fallen to 1.9% from about 3.0% a year ago.

The company cited manpower costs as the main challenge going forward. I will need to do more research how the various government incentives will impact the compact. Based on the results and ratios, I will say that the company is priced with almost no further upside unless dividend payout increases. 

GMG Global

Revenue fell 20.2% to SGD 806 million due to the low natural rubber prices despite higher tonnage sold. The company registered a loss of SGD 35 million compared to the previous year's profit of SGD 8.7 million. No dividends were declared.

PE is not calculable for the 2014's results while in the previous year, it was 81 times. PB went from 0.8 times to 0.6 times largely because of the sharp fall in earnings. 

The company said that natural rubber prices are expected to remain volatile in 2015, which is code word for low.I believe that this will remain the case as crude prices are expected to remain low in 2015 as well. This will keep synthetic rubber prices, a competing product, low. As with all commodity stocks, timing your future purchase will be key and I think things will improve earliest mid-2016.

Hong Leong Finance, Petra Foods and Super Group will be continued another day.

No comments:

Post a Comment