HOHUP (5169) - (Icon8888) Ho Hup - Major Shareholder Busy Buying
11 Feb 2015, 07:32 PMHo Hup Construction
Background Information
(a) Principally involved in construction and property development.
(b) Jewel of the crown is 60 acres of land in Bukit Jalil out of which 10 acres to be self developed and 50 acres JV with Malton. The JV project is called Bukit Jalil City.
(c) Under the JV agreement, Malton agrees to pay Ho Hup 18% of the GDV (estimated to be RM4.5 billion). This works out to be RM810 mil. The project will be completed within 10 years. This means that on average, every year Ho Hup is entitled to approximately RM80 mil cash proceeds from Malton.
In June 2014 quarter, Ho Hup received RM11.9 mil payment from the JV and reported RM9.8 mil gross profit. This translates into gross margin of 83%. The high profit margin is because Ho Hup doesn't need to do anything. All construction and funding costs will be borned by Malton. Based on this gross margin and 25% tax rate, average net profit per annum from the JV is approximately RM50 mil.
(d) The remaining 10 acres are being developed by Ho Hup. The project is called Aurora Bukit Jalil. The properties were launched in 2012 and has been well received. The group is currently booking in the profit from the project.
Ho Hup Construction Co Bhd (HO) Snapshot
Open
1.36
|
Previous Close
1.36
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Day High
1.36
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Day Low
1.34
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|
52 Week High
04/24/14 - 1.72
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52 Week Low
10/8/14 - 1.12
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|
Market Cap
466.1M
|
Average Volume 10 Days
1.0M
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|
EPS TTM
0.32
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Shares Outstanding
342.7M
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EX-Date
09/5/01
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P/E TM
4.3x
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Dividend
--
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Dividend Yield
--
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Strong balance sheets with only RM3.3 mil borrowing :-
The group's earnings grew substantially since December 2013 quarter.
Growth accelerated during June and September 2014 quarters :-
Quarter Result:
F.Y. | Quarter | Revenue ('000) | Profit before Tax ('000) | Profit Attb. to SH ('000) | EPS (Cent) | DPS (Cent) | NAPS |
---|---|---|---|---|---|---|---|
2014-12-31 | 2014-09-30 | 95,045 | 24,464 | 18,481 | 6.00 | - | 0.3300 |
2014-12-31 | 2014-06-30 | 88,531 | 16,734 | 17,044 | 6.65 | - | 0.2800 |
2014-12-31 | 2014-03-31 | 82,416 | 11,326 | 11,312 | 6.66 | - | 0.3000 |
2013-12-31 | 2013-12-31 | 47,846 | 9,025 | 12,899 | 12.65 | - | 0.8100 |
2013-12-31 | 2013-09-30 | 61,586 | 4,235 | 2,773 | 2.72 | - | -0.4200 |
2013-12-31 | 2013-06-30 | 16,654 | 6,153 | 6,450 | 6.32 | - | -0.4400 |
2013-12-31 | 2013-03-31 | 23,278 | 836 | 375 | 0.37 | - | -0.5000 |
Management's comments for March 2014 quarter :-
Management's comments for June 2014 quarter :-
Management's comments for September 2014 quarter :-
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"Aurora", Ho Hup's ongoing development project in Bukit Jalil with GDV of RM1 billion.
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