Showing posts with label CRESBLD. Show all posts
Showing posts with label CRESBLD. Show all posts

Sunday 18 July 2010

A brief appraisal of Crest Builder Holdings Bhd. (CRESBLD)




A brief appraisal of Crest Builder Holdings Bhd. (CRESBLD)

Cresbld is engaged in construction and property development.

Crest Builder is a class A contractor registered under catgory G7  with the CIDB which enables it to tender for any government and private contracts of unlimited value.  Not unlike the other listed contractors, CRESBD has also ventured into property development amid an extended gloom in the construction industry in the Nineties.

1.  Let's look at its historical Sales and Earnings

FY ending Dec 05  Sales 253 m  Earnings  11.7 m
FY ending Dec 06  Sales 318 m  Earnings  20.0 m
FY ending Dec 07  Sales 366 m  Earnings  40.2m
FY ending Dec 08  Sales 270 m  Earnings  12.3 m
FY ending Dec 09  Sales 325 m  Earnings  10.7 m

Stock Performance Chart for Crest Builder Holdings Bhd

2.  The company is in a competitive business which is rather challenging.

(No economic moat).

3.  Future Growth Drivers

Not analysed.  However, you can get an idea of the present and future activities of this company by visiting these posts.  Courtesy of Eric Yong's Blog.



Past Projects:
  • Property development called 3 Two Square in Section 14, PJ in 2007. The project comprising a corporate office tower called The Crest and retail shops and offices contributed materially to the record earnings in 2006 and 2007. CRESBLD has retained the Corporate Tower 'The Crest' and the car parks for recurring income, marking its entry into property investment/management.
  • Mixed development scheme called Alam Hijau in Mukim Damansara.
  • Other projects are located in Kelana Jaya and Mont Kiara.

4.  Long Term Liabilities and D/E ratio

FY ending Dec 05  LTL 78.8 m  D/E 0.71
FY ending Dec 06  LTL 67.6 m  D/E 0.53
FY ending Dec 07  LTL 90.4 m  D/E 0.56
FY ending Dec 08  LTL 45.6 m  D/E 0.54
FY ending Dec 09  LTL 111.46 m  D/E 0.65

Note:  The amount of net debts rose substantially in 2009.

FY ending Dec 05  Interest Expenses 4.79 m
FY ending Dec 06  Interest Expenses 4.70 m
FY ending Dec 07  Interest Expenses 8.05 m
FY ending Dec 08  Interest Expenses 8.03 m
FY ending Dec 09  Interest Expenses 8.28 m

5.  ROE

FY ending Dec 05  7.71%
FY ending Dec 06  11.11%
FY ending Dec 07  18.58%
FY ending Dec 08  5.55%
FY ending Dec 09  4.66%


6.  CAPEX required to maintain current operations

Not analysed

7.  Is Management is buying or holding the stock?

FY ending Dec 05  Mr.  Yong Soon Chow (Direct & Indirect) 43.66%
FY ending Dec 06  
FY ending Dec 07  
FY ending Dec 08  
FY ending Dec 09  Mr. Yong Soon Chow 34.61% Yong Tiok Chin (daughter of YSC) 6.18%

8.  Price versus Intrinsic Value

NTA per share

FY ending Dec 05  NTA/Share RM0.75
FY ending Dec 06  NTA/Share RM0.92
FY ending Dec 07  NTA/Share RM1.47
FY ending Dec 08  NTA/Share RM1.52
FY ending Dec 09  NTA/Share RM1.59

Given the strategic location of the properties namely, Corporate Tower 'The Crest' and the car parks, hefty fair value adjustments on investment properties lifted the NTA sharply (+61%) in 2007.

Present Price of CRESBLD share: MR0.69
Number of shares: 124.09 m
Market Cap 85.6 m
Warrants 24 m units Maturity 30/5/2013 Exercise Price RM 1.00


Well, will you buy this stock for long term investment?

I won't because this stock fails my tests for a GOOD QUALITY company.  It is neither a great nor a good, but a gruesome company by my definition.

I invest and I rarely speculate.