Tuesday, October 25, 2016

CCB (2925) - The Return of the Luxury Car



Corporate Profile

Cycle & Carriage Bintang, a member of the Jardine Cycle & Carriage Group, is listed on Bursa Malaysia. It is the largest dealer of Mercedes-Benz motor vehicles in Malaysia, providing high quality retail and after-sales service.
Jardine Cycle & Carriage ("JC&C") is a leading Singapore-listed company and a member of the Jardine Matheson Group. JC&C has an interest of just over 50% in Astra International, a premier listed Indonesian conglomerate. JC&C's Direct Motor Interests operate in Singapore, Malaysia and Myanmar under the Cycle & Carriage banner, and through Tunas Ridean in Indonesia and Truong Hai Auto Corporation in Vietnam. JC&C's Other Interests comprise interests in market leading businesses in the region through which JC&C gains exposure to key economies by supporting such businesses in their long term development. Together with its subsidiaries and associates, JC&C employs some 245,000 people across Indonesia, Vietnam, Singapore, Thailand, Malaysia and Myanmar.
Company's 5 years P&L
In year 2015, Company earning has increase 500% from Rm 10mil earning in 2014 to Rm 52mil, earning per share increase from 10.26sen to 51.74sen.

For FY2016,

For the first half of 2016, company has achieve revenue of  Rm 737.8mil and with net profit of Rm29.1mil. The company will announce their Q3 2016 earning in October and below are the latest sales that has announce on TheStar on 06 October 2016,

In the above, the sales figure has already surpassed last year's total sales by 10%, and below is the 2015 earning up til September 2015

Up til 30 Sep 2015, total revenue is Rm 1.19 bil and with total earning Rm 41.9mil which is equal to earning per shares 41.62sen. With the total sales in 2016, with the surpassed by 10%, i believe in coming quarter the revenue can hit Rm 500 mil, and this will also lead up by better earning in this quarter compare to last year same quarter.

The company also confident with their sales for FY2016,
“We’re confident of exceeding last year’s figures. Despite a tough market, we feel that we have the right measures in place,” he told reporters on the sidelines following the launch of the company’s Mercedes-Benz C350e yesterday. (06 October).
Dividend History
CCB  paying very high dividend in Year 2006 with special dividend of Rm 2.03 per share, Year 2008 Rm 1.35 per share and Year 2009 Rm 1.20 per share, and after that the dividend has been reduce to 10sen and 5 sen in the coming years and no dividend payout for year 2013 and 2014 due to lower earning.

Chart,

The company share price has trading sideway between Rm 3.10 to Rm 3.50 for few months and strong support at Rm 3.00 level. The share price also stay above MA 20 since last year, i believe is a good time to collect before the coming quarterly report.
With the confident target sales for FY2016 will better than 2015, i believe company earning can maintain at Rm 52mil or equal to earning per share 51.74sen. With the better performance, i also believe company will given better dividend in coming year to reward their shareholders.

My Long term Target Price: Rm5.20  (PE 10 on 2015 earning)

Happy Trading!

Regards,
Nick Loke


2 comments:

  1. Mechanic Servicing Perth, Accredited Log Book Service. Audi, BMW, Mercedes Benz, Mini, Porsche & VW Specialists. Servicing German cars in Perth since 1999.
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