Thursday, December 16, 2010

YGL ... Dec10

KENANGA RESEARCH

-  9MFY10 net profit of RM706,000 was higher than our loss expectations of RM1.9m as YGL rolled out their proprietary software solution packages which is gaining traction among its clients. The proprietary software has higher margins which aided the recovery to profits as gross margins are back above 30% which is the historical norm.

- YoY, 9M10 net profit grew from a net loss of RM1.05m to RM706,000 with improved operating margin as fixed cost is high given it is largely staff cost.

- QoQ, 3Q10 net profit of RM291,487 was 34% higher despite 14% lower revenue. This typifies the services industry where improvement in earnings and margin above the fixed cost would fall straight to the bottom line.

- Going forward, Asia Pacific region will turn positive in the next quarter as they have narrowed their operating loss to RM3,390 only while Malaysia is improving sharply given that corporations are increasing IT spend after the last two years of drought in spending.

- We are revising upwards the FY10 and FY11 net profit forecast to RM0.829m and RM1.064m from a net loss of RM1.9m and RM0.7m respectively. Given the 3 successive quarters of net profit, we are heartened by the improved profitability and margins.

- Maintain our HOLD with Target Price of 22 sen based on P/BV of 2x on FY11 BV of 11.1sen which we see as fair at this juncture. Although we are heartened that YGL managed to turn-around its net profit for 3 consecutive quarters growing high on each quarter, we believe it is still too early to turn bullish on the stock. Their healthy balance sheet

22 comments:

  1. buy tramadol online tramadol hcl vs percocet - generic tramadol hydrochloride

    ReplyDelete
  2. buy tramadol online tramadol 100mg pills - buy tramadol legal

    ReplyDelete
  3. buy tramadol online tramadol overnight delivery - buy tramadol pay cod

    ReplyDelete
  4. xanax online xanax side effects in elderly - xanax and alcohol od

    ReplyDelete
  5. generic xanax 1mg xanax 1 beer - xanax pictures of pills

    ReplyDelete
  6. buy tramadol online tramadol ultram online - tramadol dosage effects

    ReplyDelete
  7. generic xanax drug interactions between topamax xanax - xanax and zoloft overdose

    ReplyDelete
  8. buy tramadol online no prescription overnight tramadol ultram drug test - buy tramadol overnight delivery no prescription

    ReplyDelete
  9. tramadol online pharmacy tramadol dosage for goats - tramadolonlinepharmacy

    ReplyDelete
  10. buy tramadol online can i buy tramadol online - can you buy tramadol over the counter in spain

    ReplyDelete
  11. buy tramadol online tramadol no prescription buy - buy tramadol hydrochloride online usa

    ReplyDelete
  12. buy cialis online cialis online rezept - cialis coupons printable

    ReplyDelete
  13. cialis online cialis vs viagra price - buy cialis online south africa

    ReplyDelete
  14. cialis online buy cialis legally usa - cialis 27 90

    ReplyDelete
  15. cialis online canada buy generic cialis online usa - order cialis and viagra

    ReplyDelete
  16. buy tramadol online cod buy tramadol sr 100 mg - tramadol for dogs cough

    ReplyDelete
  17. tramadol no rx tramadol hcl high erowid - buy tramadol without script

    ReplyDelete
  18. ways to buy ativan online ativan epocrates - buy lorazepam australia

    ReplyDelete
  19. http://reidmoody.com/#45570 ativan quit drinking - ativan sublingual 1mg lorazepam 1mg

    ReplyDelete
  20. http://ranchodelastortugas.com/#71453 extended release xanax reviews - klonopin xanax dosage equivalent

    ReplyDelete
  21. http://staam.org/#90723 tramadol overdose naloxone - tramadol hcl er 100mg

    ReplyDelete
  22. http://staam.org/#21236 tramadol 50 mg compared - can you buy tramadol over the counter in usa

    ReplyDelete