Friday, 31 January 2014

PRTASCO: 前景重估 (Prospect Re-value)

(A) 汽油业务(还没完成的收购)| O&G Segment (Under acquisition plan)


PRTASCO announced some changes on the O&G acquisition S&P proposal yesterday.
> Share acquisition percentage change from 76% to 63%.
> Acquisition value change from USD55mil to USD22mil.
> Profit guarantee (before tax) change from USD50mil to USD22mil.
> Acquisition completion date extended to 2014Q2.
> There is term and condition on this proposal to make sure the company will only to make profit in the first 4 years. Refer to (d), (e) and (f).
> Distribution plan of the profit guarantee as shown in below table.
Source: (page 8)


Although the share acquisition percentage is reduced 13%, but it will be compensate with much lower cost of acquisition for about 60% reduction. Anyhow, the profit guarantee will be reduce for about 56% as well. Lower cost with lower profit guarantee, it is a fair deal. For those shareholders who do not like this acquisition, I think it will be a good news for them. For those who look forward on this acquisition greatly, it seem like a good deal as well. Due to profit guarantee is reduced, the contribution for the first 2 years will be less significant to eps. But it will be a different story in 3rd and 4th year.

(B) 政府公寓工程的合约 | PPA1M Contract




From previous 1MALAYSIA CIVIL SERVANTS HOUSING PROGRAMME (PPA1M) contract (RM578.5mil) awarded from PUTRAJAYA CORPORATION, I predict the net profit margin as 15%. Anyhow, there is a statement from company through a bursa announcement, it mentioned the estimate net profit margin will be abound 10%. Thus, the contribution from this contract should reduce to eps7-8sen per year.

On 21-Jan-14, PRTASCO managed to get another contract to build affordable houses with RM88.1mil contract value. The estimate contribution for this contract is eps2-3sen for one and half year period.

From above 2 contracts, expect to receive more similar contract from government corporations.

相关的前贴 | Related Post:

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