COMMENTS ON BINA PURI HOLDINGS BERHAD (5932)

BINA PURI HOLDINGS BERHAD LAST 5 YEARS SHARE PRICE TREND

**analysis based on 2017 annual report.

1.       GENERAL INTRO: This counter core business is in construction, also involve in property development, quarry & ready mix concrete and power generation.

2.       NOTABLE POINTS:

a.       has its own quarry and ready mix concrete manufacturing, providing building material for its construction and property divisions.

b.      the quarry and ready mix concrete division making losses RM4.6million due to discontinuation of the Hulu Langat quarry land's lease by the authorities and intense competition from other manufacturers.

c.       have operation of diesel power plants in Indonesia and mini-hydro plant in Sulawesi Selatan. Also under planning is solar power plant in Sabah.

d.      on-going projects include manufacturing plant, office building, sewerage treatment plant, Pan Borneo Highway in Sarawak, and others, approximately worth RM2.3billion.

3.       IS THIS COUNTER A STRONG GROWTH STOCK? 

a.       REVENUE RANGE (million): ~ 1097.3 million in 2017 annual report, this is a high revenue company.

b.      SHARE PRICE: share price is on decreasing trend in last few years, decreasing from around RM1.00 to RM0.20 now.

c.       EARNING PER SHARE (EPS): in last five years been on overall decreasing trend, from 3.85sen to 1.19sen

d.      FUTURE POTENTIAL: earnings expect to remain steady due to substantial on-going projects in the pipeline

e.      CAPITAL EXPENDITURE (CAPEX): spending on purchase of new fixed assets is quite low, 5.6 million, around 0.3% of total assets, appear company has no large scale expansion plan.

4.       IS THIS A STRONG DIVIDEND STOCK?     

a.       DIVIDEND YIELD: in 2017 report, no dividend declared for the financial year

b.      CONSISTENCY: no dividend paid to shareholders since 2016

5.       OTHER INDICATORS:

a.       CASH FLOW: cash flow is negative, around -12.3 million

b.      SUPPORT BY INSTITUTIONAL INVESTORS: there is no presence of institutional investors at top 30 major shareholders list.

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