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Tuesday, January 21, 2014

TAS- the results starting to come in

Background
TAS Offshore Bhd ('TAS') is a small company involved in shipbuilding & ship repair. Its main markets are Malaysia, Singapore & United Arab Emirates.


Source: Company's website

Recent Financial Result

For QE30/11/2013, TAS's revenue increased 65% q-o-q or 60% y-o-y to RM49 million while net profit was mixed; down 15% q-o-q but rose 200% y-o-y to RM7.3 million. The q-o-q increase in revenue was due to sale of 1 unit of tug boat while net profit was lower as the immediate preceding quarter's results had been bumped higher by a reversal of impairment loss of RM3.3 million.


Table 1: TAS's last 8 quarterly results

From the chart below, we can see that TAS's bottom-line & top-line have been rising over the past 2 years. The same goes for its profit margin.


Chart 1: TAS's last 31 quarterly results 

Financial Position


TAS's financial position as at 30/11/2013 is deemed satisfactory with current ratio at 2.4 times and gearing ratio at 0.15 time only.

Valuation

TAS (closed at RM1.24 yesterday) is now trading at a current PE of 9 times (based on annualized EPS of 13.7 sen). At this PER multiple, the stock is deemed fully valued.

Technical Outlook

TAS broke above its downtrend line at RM0.40 in late 2012 (here). It has surpassed its 2009 high of RM0.85.


Chart 2: TAS's weekly chart as at Jan 20, 2014 (Source: Tradesignum)

Conclusion

Based on improving financial performance and positive technical outlook, TAS could be a good stock for long-term investment. I would rate it a HOLD for now after its strong price run-up.

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, TAS.

5 comments:

ACMK said...

Hi Alex, I bet you are referring to TAS instead of HIAPTEK for long term investment :)

charles leong said...

hi alex-you seems to be pretty occupied mentelly with lots of things in your mind! You are highting TAS but your comments are on Hiap teik !

Alex Lu said...

Hi ACMK & charles leong

Thank you for the heads up. There are too many things on my plate.

billyboy said...

Hi Alex,

How bout MKH?

OS said...

Hi Alex ,
What do you think about perstima? U wrote about this counter long time ago..
This jewel should be worth at least rm 8 based on potential earnings of 80 sen per share ... Earnings is just starting to improved .. Dividend is 40 sen or yield of 10% !! They are net cash company with over 100 million cash .. So no problem to sustain that dividend ..