Tuesday, 18 March 2014

Hock Seng Lee : Why it's Sweet

Hock Seng Lee Berhad  operates as a marine engineering, civil engineering, and construction contractor in Malaysia.

It was incorporated in 1979 and is based in Kuching, Malaysia.
 
The company undertakes

i) dredging
ii) land reclamation and earthworks
iii) road and bridge construction
iv) coastal protection works
v) other infrastructure and building works
vi) development of residential and commercial properties.


Its major shareholders are:

HSL 58.4%, EPF 9.7%, Skim Amanah Saham 5.3%
Free float 25.2%

MYR '000 2007 2008 2009 2010 2011 2012 2013F 2014F
Turnover 248168 309069 375021 488276 581500 637200 663400 698700
Profit After Tax 38940 41839 56323 73439 87300 100500 111000 119000
Extraordinary Items 0 0 0 0 0 0 0 0
P/E Ratio 15.186 6.085 10.341 12.836 9.9 8.7 7.9 7.3
Gross EPS (Sen) 34.9 7.56 10.25 13.4 15.8 18 19.9 21.3
Dividend (Sen) 3 2 12 15 3.6 3.6 3.6 3.6
Dividen Payout 86 26.5 117.1 111.9 16.3 14.1 13.1 12.2
Dividen Yield 0.566 4.348 11.321 8.721 1.9 2.3 2.3 2.3
Current Ratio 2.284 1.838 1.94 1.789 1.8 2 2.2 2.5
Quick Ratio 2.022 1.661 1.877 1.609 1.8 1.9 2.1 2.3
Total Debt Equity Ratio 0 0 0 0 0 0 0 0
Cash And Cash Equivalents  40651 56492 75910 89252 94000 22700 54200 64400
Return on Equity 17.937 17.243 19.292 21.283 23.1 22 20.1 18.2
Return on Total Assets 12.449 10.418 11.789 12.617 13.8 13.7 13.2 12.5
Return on Revenue 15.691 13.537 15.019 15.04








Source: KLSE data and Maybank IB













Today's Price: RM 1.66
PER : 10.79x
PBR: 1.7x
Div 2.1%

Latest TP:

28/2/2014 Maybank 2.30
28/2/2014  HLB 1.96
28/2/2014  PB 1.80
28/2/2014 AMMB 2.40
2/12/2013 RHB 2.06


Looks good, but not that great I guess. Fundamentally strong, but much will depend on future contract wins. No debt, but divvy rather low.