COMMENTS ON BORNEO OIL BERHAD (7036)

FIGURE 1: BORNEO OIL BERHAD LAST 5 YEARS SHARE PRICE TREND

**analysis based on 2018 annual report.

1.       GENERAL INTRO: This counter core business is on operation of fastfood franchise SugarBun and Pezzo Pizza, as well as few other minor segments.

2.       NOTABLE POINTS:

a.       fast food and franchise division: SugarBun and Pezzo in total 135 outlets. Other segments include  property management, gold and limestone mining, and bio-fraction system which convert oil palm biomass into energy.

3.       IS THIS COUNTER A STRONG GROWTH STOCK? 

a.       REVENUE RANGE (million): ~ 137 million in 2018 annual report, this is a low revenue company.

b.      SHARE PRICE: in last few years share price at 10-20sen region, in 2017 started further decline, now share price around 5sen.

c.       EARNING PER SHARE (EPS): earning per share in last 10 quarters range from -0.13 to 0.7sen, making losses in 2 out of 10 quarters.

d.      FUTURE POTENTIAL/PROSPECTS: for fastfood franchise segment continue to be challenging due to facing stiff competition from other operators

e.      CAPITAL EXPENDITURE (CAPEX): spending on purchase of new fixed assets is 79.4 million, around 11% of total assets.

4.       IS THIS A STRONG DIVIDEND STOCK?     

a.       DIVIDEND YIELD: in 2018 report, no dividend payout declared

b.      CONSISTENCY: in last five years no dividend payout to shareholders

5.       OTHER INDICATORS:

a.       CASH FLOW: cash flow is positive, around 16 million

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

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