

Wednesday, May 20, 2015

PJDev: Q3FY15 Result Update

PJ Development just released its 3rd quarter result yesterday. There are some stuff I wished to record down here for reference in case I forget in future.

~ Income Statement ~
Overall, the group posted a slightly better result compared to corresponding quarter last year at PBT level. But the group recorded a much higher effective tax rate this quarter due to losses in certain subsidiaries that are not available to set-off against taxable profits in other subsidiaries within the Group as mentioned in the statement. Thus, a lower net profit.

In terms of diluted EPS, the 10% increased in adjusted weighted average number of ordinary shares compared to corresponding quarter last year didn't help much neither.

In terms of balance sheet, there is nothing more special than the great increase in the land held for property development. This was probably due to the shares subscription of Yarra that took place in Jan and Feb respectively to fund the acquisition of a freehold land located in Victoria, Australia.

As a result, it's not hard to see a big jump in the group's total borrowings too. If look at the breakdown of the borrowings, the increases in borrowings were mostly denominated in Australia Dollar. So, probably used it to fund the Yarra's development.

In terms of cash flow, the increases in land held and development costs caused its net operating cash flow in negative number.

~ Segment Reporting ~
If compared to Q2FY15, the reason the group's performance dropped was obviously seen at segment reporting.

Both Construction and Hotel segments contributed to the poorer performance. Revenue recognition for Properties and Construction segment normally based on POC method in Malaysia. Thus, it should not be a problem as long as the property sales are good and there is no delay in executing the contract. It's just matter of when the revenue would be recognized based on the cost incurred up to date.

Hotel segment is a concern as the management did not state the reason why the segment recorded a loss in this quarter. Not sure whether it's due to startup cost incurred for the upcoming new D'Majestic and Swiss-Inn or not.

Cable division was not doing quite well with its profit margin dropping compared to last year.

Good thing is the Building Material segment continue to show good performance compared to last year. The Acotec wall panel probably continue to gain acceptance by the industry players. 

So, that's.

No unbill sales was given in the quarter report. But probably still good and the management mentioned the response of the new launch of Genting Windmill was good.

We still have to wait for few months before the corporate exchange between OSK and PJ Dev to take place.

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