COMMENTS ON BREM HOLDING BERHAD (8761)

FIGURE 1: BREM HOLDING BERHAD LAST 5 YEARS SHARE PRICE TREND

**analysis based on 2018 annual report.

1.       GENERAL INTRO: This counter core business include: (1) civil engineering & construction, (2) property development, (3) property investment, (4) water supply & services.

2.       NOTABLE POINTS:

a.    registered for PKK Class A contractor coupled with a category of Grade 7 with the Construction Industry Development Board Malaysia, qualified to tender and carry out all categories of contract and construction works.

b.    has built and operated water plant in Papua New Guinea, continuing to secure contracts for water supply and services in this region

3.       IS THIS COUNTER A STRONG GROWTH STOCK? 

a.       REVENUE RANGE (million): ~294.7 million in 2018 annual report, this is a low to medium revenue company.

b.      SHARE PRICE: last few years share price on decreasing trend, dropped from ~RM1.30 in 2014 to current share price of ~RM0.80.

c.       EARNING PER SHARE (EPS): earning per share in last 5 years were fluctuating, EPS were 10.64, 12.48, 5.18, 1.14, 11.39 sen per share, respectively.

d.      FUTURE POTENTIAL/PROSPECTS: continue to tender for more projects in future on the engineering segment, facing challenges in property development segment due to oversupply of residential and commercial properties in the market

e.      CAPITAL EXPENDITURE (CAPEX): spending on purchase of new fixed assets is 0.3 million, around 0.03% of total assets.

4.       IS THIS A STRONG DIVIDEND STOCK?     

a.       DIVIDEND YIELD: in 2018 report, 3 sen per share dividend payout declared, amount to 4.03% yield based on current share price

b.      CONSISTENCY: fairly dividend payout declared in last five years, last five years declared were 3, 3, 3, 0, 3sen per share, respectively.

5.       OTHER INDICATORS:

a.       CASH FLOW: cash flow is positive, around 96.9 million

b.      SUPPORT BY INSTITUTIONAL INVESTORS: there is presence of 1 institutional investors at top 30 major shareholders list, which is an investment fund.

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