11-11-2015, 09:52 PM
FY16Q2 results out
Key facts:
- no more write downs related to DSC
- Earnings from M&E are very strong: Gross profit of $10.1mil for 1HFY16 is an increase of 35% compared to same period last year
In comparison, gross profit FOR THE FULL YEAR for past years are:
FY15: $12.5mil
FY14: $13.3mil
FY13: $11.4mil
FY12: $13.6mil
FY11: $11.4mil
So $10.1mil for 1st half is actually very strong.
- Earnings of course show a drop, mainly due to the 1 off recognition of KTIS gain last year. Excluding extraordinary items, earnings have actually increased strongly
- NAV of $0.277 inched up, but still decreased from FY15, mainly due to the $12mil write off from DSC
- CASHFLOW: now this is something important to monitor because of KW's business model. i.e. use operating cashflows from M&E, combined with bank loans, to loan cash to associates.
Operating cashflow is still going strong, $8.6mil this quarter
Loaned another $3mil + to associates this quarter.
Some negatives though:
- Again more cash loaned out to associates. I think some transparency here would do wonders. Most investors would like to know how much is loaned to which associate. Its not provided in the FS and this is esp crucial.
KW should take a leaf out of Hock Lian Seng's FS, their partner in the Skywoods project. Their FS are always transparent and details out every item.
- Debt to equity ratio has risen further to 0.49
This is getting a bit uncomfortable. KW is relying heavily on their M&E to constantly churn out FCF which is deployed into these investments.
The M&E core business is impressive: always generating nice CF with little Capex needed.
The investing arm results are still a mixed bag.
- No interim dividend. I think this is going to be a big disappointment to many shareholders... esp since there was talk of divesting KTIS and "special dividends" etc.
(Read the glowing reports by so called "Experts")
I would've expected the interim dividend to be maintained at the bare minimum, but this is not surprising considering that cash on hand has dwindled to only $9mil + and debt to equity has increased to 0.49.
They'd have to either borrow to pay out dividends, OR sell KTIS stake (at a much lower price than before). Both of which are not good options
<vested - 1000 lots>
Key facts:
- no more write downs related to DSC
- Earnings from M&E are very strong: Gross profit of $10.1mil for 1HFY16 is an increase of 35% compared to same period last year
In comparison, gross profit FOR THE FULL YEAR for past years are:
FY15: $12.5mil
FY14: $13.3mil
FY13: $11.4mil
FY12: $13.6mil
FY11: $11.4mil
So $10.1mil for 1st half is actually very strong.
- Earnings of course show a drop, mainly due to the 1 off recognition of KTIS gain last year. Excluding extraordinary items, earnings have actually increased strongly
- NAV of $0.277 inched up, but still decreased from FY15, mainly due to the $12mil write off from DSC
- CASHFLOW: now this is something important to monitor because of KW's business model. i.e. use operating cashflows from M&E, combined with bank loans, to loan cash to associates.
Operating cashflow is still going strong, $8.6mil this quarter
Loaned another $3mil + to associates this quarter.
Some negatives though:
- Again more cash loaned out to associates. I think some transparency here would do wonders. Most investors would like to know how much is loaned to which associate. Its not provided in the FS and this is esp crucial.
KW should take a leaf out of Hock Lian Seng's FS, their partner in the Skywoods project. Their FS are always transparent and details out every item.
- Debt to equity ratio has risen further to 0.49
This is getting a bit uncomfortable. KW is relying heavily on their M&E to constantly churn out FCF which is deployed into these investments.
The M&E core business is impressive: always generating nice CF with little Capex needed.
The investing arm results are still a mixed bag.
- No interim dividend. I think this is going to be a big disappointment to many shareholders... esp since there was talk of divesting KTIS and "special dividends" etc.
(Read the glowing reports by so called "Experts")
I would've expected the interim dividend to be maintained at the bare minimum, but this is not surprising considering that cash on hand has dwindled to only $9mil + and debt to equity has increased to 0.49.
They'd have to either borrow to pay out dividends, OR sell KTIS stake (at a much lower price than before). Both of which are not good options
<vested - 1000 lots>