OCK – Fundamental Analysis (29 May 2015)

OCK Analysis:-

Excel – http://1drv.ms/1HVJmHb

Notes – http://tinyurl.com/kgpwazt

My View:-

  • Valuation:
    • Absolute EY%:
      • Trailing:
        • FY14 (EPS: 0.047) – Fair value 1.08 (Fair Value Uncertainty: MEDIUM)
        • R4Q (EPS: 0.031) – Fair value 0.71 (Fair Value Uncertainty: VERY HIGH)
      • Forward:
        • FY15 (EPS: 0.06) – Fair value 1.38 (Fair Value Uncertainty: LOW)
        • FY16 (EPS: 0.07) – Fair value 1.62 (Fair Value Uncertainty: LOW)
      • EPS applied to reach the current stock price (0.85): 0.037
  • FY15Q1 – Seasonally weaker. OCK’s 1Q15 core earnings inched higher by 0.2% YoY to MYR3.1m but fell 58% QoQ on seasonality. Revenue contracted 6% QoQ (+53% YoY) while EBITDA fell 33%, against the high base of billings in 4Q14.
  • In my opinion, OCK is undervalued, and looks like its growth drivers are quite secured with the strong pipeline of site maintenance jobs and local LTE deployments.
  • I will continue to study this stock.

Latest Financial – Q1 2015 Financial Report (27 May 2015) http://www.bursamalaysia.com/market/listed-companies/company-announcements/4753181

At the time of writing, I did not own shares of OCK.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s