Maintain outperform with a lesser target price (TP) of RM1.55: Crescendo Corp Bhd’s first nine months of financial year 2018 (9MFY18) core net profit (CNP) of RM32.6 million is in line at 77% of our full-year estimate. No consensus estimates available. Property sales of RM154.4 million are also on course to meet up our target of RM221 million. No dividends were declared, as expected. There are no changes to our FY18 to estimated FY19 earnings.
The company’s 9MFY18 CNP registered a solid year-on-year (y-o-y) growth of 51% underpinned by decent improvements, namely in revenue (+21%) and earnings before interest, taxes, depreciation and amortisation (ebitda) margins by two percentage points (ppts) to 27%. These improvements in revenue and margins are due primarily to decent progressive billings and contributions from industrial properties. Quarter-on-quarter (q-o-q), the third-quarter (3QFY18) CNP declined 43% due primarily to weaker revenue (-18%) stemming from lower property sales in industries.
In the years ahead, Crescendo is seeking to launch 24 units of cluster factories at Taman Perindustrian Cemerlang, 102 units of mid-market landed residential properties at Bandar Cemerlang, 54 units of shop offices at Bandar Cemerlang and Taman Desa Cemerlang along with 426 units of affordable housing at Bandar Cemerlang and Tanjung Senibong in Johor with a combined gross development value greater than RM300 million. Unbilled sales stood at RM168.4 million, providing a minumum of one year’s visibility.
We make no changes to our FY18 estimate (E) to FY19E earnings estimates and keep our FY18E sales target at RM221 million. We maintain our “outperform” call after considering its decent sales performance and better mixture of industrial product sales coupled with improving profitability. However, we lower our TP to RM1.55 (from RM1.60) based on a current -1.0 standard deviation level historical revised net asset value discount of 76% (from 75%). We believe such valuation levels are fair considering its full contact with Johor. Our TP implies 9.2 times FY19E price-earnings ratio that is below its historical average of 11 times.— Kenanga Research, Dec 26
April 8, 2019
permeable liner, and a shape or superstructure for supporting and reinforcing the sidewall. The frame assembly generally carries a lower rail and a premier rail to that the pool sidewall is attached. The liner is mounted on an interior surface of the pool sidewall along a top edge.
Swimming being an organized activity goes back so far as 2500 b.c. in ancient Egypt. Actual swimming pools were invented in the very first century b.c. by the Romans. In Rome and Greece, swimming was area of the education of young boys. Most of the Roman pools were also heated using water diverted through piping from natural springs. The elaborate bathhouses built with marble and expensive gilding were very popular with the elite society but the majority of people continued to swim in lakes and rivers. These bathing pools were the precursors to contemporary swimming pools.
In Europe, many individuals refrained from building swimming pool as a result of fear that infections could possibly be caught from infected swimmers. Europeans formed their first swimming organization in 1837 in London, which at the same time had six indoor pools. The popularity of swimming pools did not begin to boost until after the very first modern Olympic games in 1896.
Raw materials for manufacturing swimming pools contain polyvinyl chloride (PVC) plastic, galvanized steel or metal, fiberglass, concrete, and polyurethane foam. Adequate steel bars for reinforcing a concrete pool range in dimensions from 0.38 in (0.97 cm) to 0.75 in (1.9 cm) diameter (these values vary depending on the structural requirements of the design). All piping used for pool plumbing is at the least schedule 40 PVC or very same and must be stamped with American Society for Testing and Materials (ASTM) approval. The liners are usually plastics or similar materials.
All of the designs for swimming pools certainly are a reflection of the initial spatial and economic concerns of the consumer. Concrete pools are the most flexible with the capability to create any shape or configuration. Vinyl-lined pools are evolving into free form designs that may incorporate a larger number of design options with fiberglass pools having the most restrictive design elements (one-piece construction designed at the factory). Design drawings are completed showing the particular layout of the pool, including shape, elevation, and size. An engineer provides soil and structural analysis assisting in the location and optimal design for a swimming pool installation.
Soil analysis is conducted on all surfaces ahead of installation to make sure a structurally sound pool. A swimming also will need a system that circulates the water from the bottom of the pool to the surface to greatly help in the caliber of the water. All pools must use grounded wiring and have breakers that protect from shorts in under water lighting systems.
April 4, 2019