Tuesday, 22 December 2009

Adventa 22.12.2009

Adventa Quarterly Results

Comment:  Trading at rather high trailing PE for its fundamentals.

Adventa's 4Q net profit dips marginally

Written by Yong Min Wei
Wednesday, 23 December 2009 00:27

KUALA LUMPUR: ADVENTA BHD []'s net profit for the fourth quarter ended Oct 31, 2009 (4QFY09) dipped marginally to RM5.39 million from RM5.43 million a year ago despite a 15.2% rise in revenue to RM74.75 million from RM64.91 million.

According to a Bursa Malaysia filing yesterday, the company attributed the higher revenue to progressive addition of capacity in the surgical and dental gloves products. It also said the cost reduction exercises and high yield has improved the margin.

Earnings per share for 4Q shed 4.9% to 3.72 from 3.91 the same quarter last year.

Adventa proposed a final dividend of four sen per share tax exempt for 4QFY09 which is subject to the shareholders' approval at its coming AGM.

For the full year ended Oct 31, 2009, the company's net profit climbed 24.5% to RM17 million from the previous 13.66 million while revenue surged 52.1% to RM282.87 million as compared with RM185.94 million a year earlier.

On its current financial year prospect, Adventa said sales was expected to increase substantially gaining from the new capacities coming on stream and the new high output factory in Kluang, adding that the plant in Uruguay has been certified and would contribute to the profits.

"The group intends to increase investment into distribution and the life science division. These will be a strong contributor to the group in the future," it added.


Adventa rises on higher earnings outlook

Tags: Adventa | earnings | OSK Research | Top Glove

Written by Joseph Chin
Monday, 21 December 2009 11:39

KUALA LUMPUR: Shares of Adventa rose in morning trade on Monday, Dec 21 on expectations of higher earnings for its fourth quarter results (4QFY09) to be released on Tuesday and after OSK Investment Research raised the target price from RM1.87 to RM3.58.

At 11.30am, the share price had risen six sen to RM2.94. There were 1.408 million shares done at prices ranging from RM2.89 and RM2.94.

OSK Research said it expected the earnings to be slightly better on-quarter, judging from the solid performance earlier of its peer, Top Glove. (Comment: The latest quarter result was actually worse.)

"Also, we understand that this would be the last quarter for recognition of the company's foreign exchange losses which should still amount to approximately RM4 million. Moving into FY10, Adventa is looking to capacity expansion again.

"We are upgrading our FY10 earnings by 42% in line with the improved numbers sans forex loss. Maintain Buy with a higher target price of RM3.58 (previously RM1.87)," it said.


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