Thursday, March 4, 2010


BT - 03 Mar 2010
MediaRing declares its first dividend

A CHANGE in ownership has led to MediaRing declaring its first ever dividend in a decade-long history. MediaRing's share price rose one cent on Monday but eased half a cent to 22.5 cents yesterday after its board proposed a final dividend of 0.1 Singapore cent a share last Friday.

Since Indian billionaire BK Modi's Spice Group took control last August, the homegrown Internet telephony services provider has undergone restructuring and bought over two Indian companies - a call centre and an IT services firm - for US$2 million.

Reporting its first set of full-year results following the management overhaul, MediaRing said net profit more than doubled to US$1.74 million for the year ended Dec 31, 2009, from US$0.7 million the preceding year. FY09 earnings per share were 0.14 US cent, up from FY08's 0.06 US cent.

This was despite an 18 per cent fall in total revenue to US$114.9 million in FY2009 from US$140.8 the previous year. MediaRing attributed the fall to 'strong competition in current telecommunication and computing business segments, coupled with weaker consumer sentiment due to economic slowdown'.

The group's profits defied its revenue decline thanks to new acquisitions such as that of Bharat IT Services Limited, which yielded a net gain of US$4.5 million after deferred taxation. The management also said that the restructuring exercise last September cost the group US$1.9 million, including payouts to over 50 employees who were laid off, but will improve productivity in the long run.

Looking ahead, the group said that it is keen to develop new products and new revenue streams, including the sale of mobile handsets. Last week, MediaRing announced a joint venture with Malaysian-based handset maker CSL Group.

'Drawing upon the synergistic capabilities of Spice Group, MediaRing is being repositioned as a company with a strong mobile Internet focus, expanding into new geographies and driving growth through constant innovation,' said Dr Modi, who is now MediaRing's chairman

Tuesday, March 2, 2010

Sunway City (MY)-apex

1 March 2010
Sunway City - Buy
Price ( 25-Feb-10 ) 3.30
Target Price: RM4.18 (from RM 3.46 previously).

Solid quarterly results
Revenue = RM258.4mil (+1.8% q-o-q)
PBT = RM75mil for 6QFY09 (+ 9.5% q-o-q)
8MFY09 Net Profit = RM223mil
Final dividend = 5 sen was proposed

Results Review
Property development projects with significant contribution during the quarter were from Sunway Damansara and Sunway SPK whilst Sunway Pyramid Shopping Mall remained as the major contributor from property investment segment.

Meanwhile, the group reported a revaluation gain of RM804.9mil during the quarter under review as a result of higher valuation from strong growth in the earnings of the investment properties such as Sunway Pyramid, Sunway Carnival and others investment properties.

Sales of new property were RM 155mil (+14% q-o-q)
Sales of new property during the quarter were RM155mil as compared to RM136mil in the previous quarter. It is worth to note that the property sales have been improving since 3QFY09. The major contributor for the quarter is Vivaldi with more than 9 times increase in sales on a quarterly basis. Meanwhile, total new sales for CY09 is RM410mil which has exceeded the management’s target of RM330mil by 24%.

On the other hand, the group’s unbilled sales of RM637mil should help to underpin near term earnings visibility. Besides that, the group plans to launch several projects in 2010 (with an estimated value of RM1.5bil)in order to sustain longer-term profits. These projects are located in Klang Valley and overseas such as China and India.

An interim dividend of 5 sen was proposed for the current quarter.

Investment risks
Slower-than-expected recovery in global economy

Despite the worst of the recession is over, a slower-than-expected recovery in global economy will adversely affect the group due to a possible slowdown in property demand.

Slower-than-expected progress billings, delays in launches and construction progress

One of the main reasons for delays in launches and construction progress is unstable building material costs. Therefore, this risk is not significant in anticipation of steadier building material costs in coming quarters.

Competition from peers
Suncity is facing competition from its peers to attract buyers as the property sector is one of the most efficient and open sectors. We opine that Suncity can compete very well against its competitors with its strong brand name and highquality residential products.

Rising operating costs
The situation should be improved in anticipation of lower building material costs, especially with lower steel prices.

Maintain Buy with a higher TP of RM4.18(from RM3.46 previously) We value the stock at RM4.18, which is derived from its 5-years average PER(adjusted) of 9.8x and forecasted FY10 EPS of 42.7 sen. At this level, the stock is trading near its net asset value per share of RM4.68. We favour Sunway city due to its attractive valuation and its defensive qualities. Furthermore, Sunway city is waiting for the right time(likely to happen in the first half of 2010) to unlock the value of its property assets through a real estate investment trust (REIT). Should the planned REIT materialize, it should give the group a net cash position and offer attractive value to its shareholders. We anticipate the REIT will include Suncity’s retail property assets such as hotels, shopping malls and theme park.
Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)

乔治·索罗斯(George Soros)



高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo

There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
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