Towards Financial Freedom
Jaya - Good News First, Or The Bad?
Jaya's FY13 results surprised owing to USD17.6m in net one-offs, excluding which its core earnings of USD28.4m were in line, just 3% shy of our prior USD29.3m forecast. The 3.5 cent dividend is a new positive but vessel disposals and further delays may hurt near-term growth. As its shares have fallen 14% since we initiated coverage three months ago, upgrade to NEUTRAL, with SGD0.61 TP.
- Exceptionally-high utilisation buoys returns. 4QFY13 was a bumper quarter, with fleet utilisation at a record 91% while charter revenue came in at USD29.8m and gross margin at 40%. The USD24.7m in pretax income can be split into USD17.2m from one-off gains and losses, and core earnings of USD7.5m (See Figures 1 and 2 for details).
- High dividend reminiscent of 2011-2012 Vard Holdings. The 3.5 cent dividend is a positive, but we see a direct parallel in Vard Holdings (VARD SP; BUY; TP SGD1.10), which had paid out a higher than normal dividend while its major shareholder(s) looked to exit the company. To be fair, this dividend should be sustained by Jaya's recurring earnings, although the payout ratio appears high.
Source: OSK
Related Stocks
| Chart | Stock Name | Last | Change | Volume |
|---|
Market Buzz
More articles on Towards Financial Freedom
Duty Free International Ltd. - A duty-free giant in the making
Created by kiasutrader | Oct 17, 2016
Cityneon Holdings - 'Avengers' showcasing in the Land Down Under
Created by kiasutrader | Jun 07, 2016
Discussions
Be the first to like this. Showing 0 of 0 comments
Post a Comment
Featured Posts
New Update. Discover investment communities that resonate with your ideas
Trade Confidently & Analyze Charts Conveniently - Download VCPlus IOS & Android App Now!
Latest Videos
Apps
Top Articles
1
RHB Investment Research Reports
ST Engineering - Rolling Forward Our Valuation; Reiterate BUY
2
CEO Morning Brief
Singapore Home Sales Set for Worst Year Since Financial Crisis
3
SGX Market Dialogues
Kopi-C With GuocoLand’s Group CEO: ‘We Have Twin Engines for Growth’
4
CEO Morning Brief
DBS Posts 300% Growth in Semi-liquid Fund Sales in Greater China
5
Collin Seow Remisier Blog
#
Stock
Score
Daily Stocks
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Stock Name
Last
Change
Volume
Featured Advertisers / Partners
Ride The Bull Short The Bear
CS Tan
4.9 / 5.0
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
