Friday, 25 April 2014
Pantech FY14Q4 Financial Result
| PANTECH | FY14Q4 | FY14Q3 | FY14Q2 | FY14Q1 | FY13Q4 |
| Revenue | 127.8 | 131.1 | 153.8 | 162.2 | 156.3 |
| PBT | 19.1 | 16.3 | 21.9 | 18.5 | 18.8 |
| PBT% | 14.9 | 12.4 | 14.2 | 11.4 | 12.0 |
| PATAMI | 14.6 | 12.1 | 15.3 | 13.8 | 12.6 |
| Manu Rev | 49.9 | 56.0 | 76.8 | 82.5 | 65.5 |
| Manu PBT | 9.3 | 10.1 | 13.0 | 12.6 | 7.6 |
| Trade Rev | 77.9 | 75.1 | 77.0 | 79.8 | 90.8 |
| Trade PBT | 9.8 | 7.0 | 9.9 | 8.9 | 12.4 |
| Total Equity | 430.0 | 417.7 | 411.4 | 393.2 | 376.7 |
| Total Assets | 687.6 | 698.8 | 722.2 | 687.6 | 695.8 |
| Trade Receivables | 128.7 | 120.8 | 128.5 | 125.1 | 111.2 |
| Inventories | 252.3 | 235.7 | 245.1 | 246.9 | 258.5 |
| Cash | 59.9 | 99.7 | 97.6 | 78.3 | 79.3 |
| Total Liabilities | 257.5 | 281.1 | 310.7 | 294.4 | 319.0 |
| Trade Payables | 44.8 | 36.9 | 56.3 | 46.2 | 36.5 |
| ST Borrowings | 130.6 | 144.2 | 148.9 | 151.0 | 181.1 |
| LT Borrowings | 63.1 | 78.8 | 75.1 | 79.1 | 75.4 |
| Net Cash Flow | -27.5 | 15.5 | 13.9 | 0.5 | -22.9 |
| Operation | 65.9 | 41.2 | 29.5 | 4.6 | 38.6 |
| Investment | -33.4 | -24.3 | -16.7 | -5.8 | -82.2 |
| Financing | -59.9 | -1.3 | 1.2 | 1.7 | 20.8 |
| EPS | 2.68 | 2.24 | 2.91 | 2.70 | 2.64 |
| NAS | 0.76 | 0.74 | 0.73 | 0.77 | 0.74 |
| Net D/E Ratio | 0.31 | 0.30 | 0.31 | 0.39 | 0.47 |
In its latest FY14Q4, Pantech's total revenue continue its gradual
downtrend since 4 quarters ago because of weaker demands from Oil &
Gas sector with slower projects execution. However, profit after tax
improves both QoQ and YoY due to sales of better margin products.
After the acquisition of Nautic steel and the positive on Oil &
Gas sector, I anticipate Pantech to make more sales due to its expanded
reach worldwide through Nautic steel's network. However, current
results are a bit disappointing.
Anyway, Pantech proposes a final single tier dividend of 1.0sen for
its FY2014, which makes it altogether 4.4sen dividend in FY14, slightly
lower than 4.6sen in FY13.
Thus its dividend yield is at 4.4% at share price of RM1.00 currently.
This represents a dividend payout of 45% from its FY14 net profit.
Its quarterly and consistent dividend payout of between 40-45%, and the
decent dividend yield make Pantech quite attractive.
Pantech's balance sheet still remain stable thanks to its strong
operation cash flow. It managed to repay its borrowings while
maintaining good dividend payout.
Its net debt/equity ratio stays at a healthy 0.31, even though cash drops significantly from RM100mil to RM60mil.
| PANTECH (RM mil) | FY14 | FY13 | FY12 | FY11 | FY10 | FY09 | FY08 |
| Revenue | 574.9 | 635.7 | 434.6 | 335.8 | 401.6 | 511.6 | 313.3 |
| Rev growth % | -9.6 | 46.6 | 29.4 | -16.4 | -21.5 | 63.3 | |
| PBT | 75.9 | 80.2 | 47.2 | 37.4 | 66.8 | 82.0 | 45.0 |
| PBT margin % | 13.2 | 12.6 | 10.9 | 11.1 | 16.6 | 16.0 | 14.4 |
| PATAMI | 55.8 | 56.1 | 34.2 | 29.0 | 50.8 | 61.5 | 34.1 |
| PATAMI growth % | -0.5 | 64.0 | 17.9 | -42.9 | -17.4 | 80.4 | |
| Trade Rev | 309.8 | 384.7 | 308.2 | 243.9 | 363.5 | 428.6 | 265.1 |
| Manu Rev | 265.2 | 250.9 | 126.4 | 91.9 | 64.3 | 116.3 | 71.1 |
| Trade PBT | 34.3 | 60.6 | 43.0 | 43.1 | 44.4 | 73.5 | 36.3 |
| Manu PBT | 44.6 | 26.3 | 7.6 | 7.3 | 5.8 | 16.6 | 14.7 |
| EPS | 10.23 | 11.73 | 7.60 | 6.45 | 13.60 | 16.43 | 9.10 |
| ROE | 13.0 | 14.6 | 10.1 |
For the whole FY14, revenue falls 9.6% while PATAMI falls only 0.5% compared to FY13, thanks to improved margin.
Generally contribution from manufacturing division continue to rise
but at slower pace. Its trading division encounters a setback with
lower demand and lower margin.
Its ROE is still at a good double digit 13.0%.
For its future outlook, Pantech is widely tipped to benefit from
the Pengerang RAPID project which was given a green light in early April
2014 and is expected to be fully completed and operational by 2019.
Pantech will benefit in RAPID's construction stage by supplying the
pipes, fittings & flow control solution (PFF). However, it is not
sure that when will this project start and what is the contract value
that Pantech can get.
It is reported by analysts that Pantech has good business
relationship with most of the major O&G players in the country so it
should not have a big problem to get orders and contracts.
Pengerang Integrated Complex
Apart from this, the increased capacity at Nautic Steel from 500
MT/annum to 800 MT/annum might contribute positively to the group due to
robust O&G activity worldwide and recent NORSOK certification. The
management guides that it may increase the capacity further to 1,000
MT/annum by CY2015.
After being "disqualified" as Syariah compliant stock last year,
Pantech is restructuring its debts so that it can be reinstated to
Syariah compliant by the end of CY2014.
Even though FY14 is not a good year for Pantech due to slower than
expected O&G projects execution, I believe that with the approval of
RAPID, it can only get better in the future.
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