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23-04-2014, 02:56 PM
(22-04-2014, 04:28 PM)CityFarmer Wrote:(22-04-2014, 04:06 PM)gutman Wrote: I believe it was a problem with execution.
There was no lack of contracts as seen in the sales revenue of 80+ mil to 132 mil from 2009 to 2011 which. In 2011, with a record revenue of 132 mil, it turns in a pathetic profit of 0.3% and ROE of 0.5%, compared to in 2007, revenue was 124 mil, profit margin 12% and ROE of 20%.
The hammer came hard in 2012 and 2013 when cost of materials, subcontract and others came up to 94% and 99% of revenue respectively. The losses in both years were 29 mil each, measuring loss margin of 45% and 59% respectively.
NAV came falling down from 21 cts in 2007 to 6 cts currently.
Agreed. I am also more inclined to believe that it was a problem of execution.
Base on the Chairman's comment on project delays and cost overruns (from recent The Edge article), the company had lost control on the issues, "fighting fires" all the time, and blaming "A lot of the writeoffs that hit our books in recent years are a result of a lot of work that we contracted back in 2006 and 2007" (meaning not his fault, because he onboard in 2011)
What a comment from the Chairman of a company...
(not vested)
That was a good try by the Chairman. To put the blame on others way way back. And since 2006 and 2007 was the period that the founder was still managing things but has since passed away, it was convenient to push the blame to the dead as he would not be able to rise from his death to defend himself.
I learned from their staff that the duration of their projects were at most 2 years, and in some rare cases, maybe 3 years. So to blame on projects that were contracted 6 to 7 years ago, I just don't know what to say.
In fact, we can simply go to their website and dig out their contract announcement in 2006-2007 which are still available http://pterisglobal.listedcompany.com/ne.../year/2006. Most of these projects were to be completed by 2009.
Oh, unless they could not complete those projects in time and were penalized with liquidated damages. But isn't that a problem with execution by the current management?