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ROHAS (9741) : ROHAS TECNIC BERHAD

ILoveDividend
This is a very good dividend stock + growing stock if you are looking for long term investment return.

I have been holding TECNIC when it was RM2.10 during 2010. I received my first dividend cheque of 16cents in 2010 which is around 7.5% dividend yield based on my entry price.

But last year it has increase their dividend payout to 20 cents and i was getting almost 10% dividend yield last year.

For this year, they are able to acheive very good results for the pass 3 quarters which giving total EPS 44 cent(16.58 + 16.35 + 11.08 ). So,assume their last quarter report (Q4) register another 16 cents, then the total EPS for FY2011 is 60 cent.

So,i am expecting more dividend coming from it which should be around 30 cents (14% dividend yield for my entry price) based on their dividend policy of 50%.

I am happy to holding it not because of my capital gain almost double, but i am receiving more and more dividend from it every year.

Anyone here holding TECNIC also? Please share your opinion here.
04 Jan 2012, 01:54 PM
KLSETrader

Hi ILoveDividend,

Thanks for sharing. Tecnic is a very good stock. Will put in my watchlist.
04 Jan 2012, 03:33 PM
CNY2012


If the total EPS is 60 for this year, then PE for now is less than 6 (RM3.5 / 0.60) which is selling at very attrative price now. Thanks for sharing...Cheer
05 Jan 2012, 09:46 AM
ILoveDividend
Wah...Another 10cents profit...yeah
But wonder what is the news to drive both TECNIC and SKPRES up so much recently? drool

The only news i can recall is TECNIC is going to privatize SKPRES. Hope TECNIC will not be privatized though..sweat
17 Jan 2012, 04:28 PM
ILoveDividend
What a crazy stock? It used to trade at RM0.34 in 2009. But it was all the way up until RM3.64 today without much pullback along the way.

Tecnic's Price from 2009 to 2012
Forum | MalaysiaStock.Biz

Is it expensive now? No, it is trading at just PE 6-7. How much is your dividend if you able to buy at RM0.40 in 2009? Expected dividend for FY2011 should be around 30 cents. So, you are getting 75% dividend yield without worry much about its price.

If you only invested RM10,000 in this stock at RM0.40, you are getting Rm7,500 dividend every year.

My entry price was much higher, i am just dreaming how good if i bought it in 2009. wub. Just sharing...shy
17 Jan 2012, 07:35 PM
ILoveDividend
RM3.73 wub
18 Jan 2012, 08:42 PM
ILoveDividend
Huat ah....yeah
New year new high..shy
25 Jan 2012, 10:55 AM
Jacky
Old reserch paper from Inet Research dated 01 Dec 2011:thumbup

Target Price: RM4.90

1. 3QFY11 Results Highlight
- Tecnic grew its turnover by 18.3% to RM53.6m in 3QFY11. Both PBT and net profit jumped by 51.7% and 47.3% to RM7.8m and RM6.7m respectively.
- Its Plastic division was the key growth driver, which expanded its EBIT by 61.7% to RM7.8m in 3QFY11. This was attributed to increase in production capacity and continuous orders from its MNC customers. After successfully making inroad into local-based MNCs since FY10, these customers have started to contribute more significantly in FY11. In addition, Tecnic can now cater to a more diversified customer base including the visual and automotive sectors with the expansion in production capacity in large tonnage injection moulding machines.
- Mould Fabrication (Mould) division however saw a 36.5% decline in EBIT to RM0.6m in 3QFY11. This division is mainly a complementary division for its downstream operations of plastic injection and blow moulding.
- PBT margin improved to 14.5% (3QFY11) from 11.3% (3QFY10) due to favourable product mix and efficient operating structure. In addition, due to cost pass-through arrangement with its customers, Tecnic’s profit margin is shielded from the fluctuation in resin prices.
- For 9MFY11, both turnover and net profit grew by 28.9% and 46.0% to RM162.2m and RM17.8m respectively. Similarly to its 3QFY11 results performance, its Plastic division saw 55.8% increase in EBIT to RM19.5m, while Mould division reported a flat EBIT at RM2.1m for 9MFY11.

2. Earnings Outlook
- Its exposure to diverse sectors such as F&B and oil and gas (for lubricant packaging) provides steady demand growth. Future growth will be underpinned by the expanded capacities of MNCs especially Sony and Panasonic which are based in the central region. Tecnic’s close proximity to these factories is an added advantage.
- Tecnic is expected to experience increasing demand from the increased sourcing needs of local-based MNCs as they expand their production base here, as well as the relocation of manufacturing facilities from China to Malaysia.
- Profitability will remain stable as resin costs are pre-determined as part of their business arrangement with MNCs.

3. Valuation and Recommendation
- Annualised 9MFY11 net profit is 23% higher than our earnings forecast for FY11. Hence, we have increased our earnings forecast for FY11 and FY12 by 17% and 12% each to factor in the higher sales volumes and better profitability.
- We are maintaining our Buy recommendation on Tecnic. We like the company for its earnings growth prospects and the stock’s undemanding P/E valuation. Arising from earnings upgrade and roll-over of our valuations benchmark into FY12, the stock is now only trading at an undemanding P/E of 4.5x for FY12. We have increased our target price to RM4.90 from RM3.80 by pegging an unchanged target P/E of 8x on
FY12.
- FY10’s net dividend payout of 20 sen, which translates into a yield of 7.1%, is another attraction. Projected dividend would increase to 28 sen/share, translating into a yield of 10.0%, given its committed dividend policy of a minimum 50% dividend payout starting FY10 and higher net profit in FY11.
06 Feb 2012, 09:12 AM
ILoveDividend
Report coming out soon... Hope it can maintain at least 16cents and 15cents dividend to be declared? drool
07 Feb 2012, 11:20 AM
ILoveDividend
Finally it broke RM4.00. rolleyes
20 Feb 2012, 04:59 PM
Destiny

Congrats brotthumbup
20 Feb 2012, 06:31 PM
gen_hwang
congratulations to all Tecnic shareholders.

[not vested]
20 Feb 2012, 07:12 PM
ILoveDividend


Thanks Destiny. TECNIC really given me a good profit this time. Hope we all can accumulate good dividend counter(S) as much as possible to give us financial freedom.
yeah
20 Feb 2012, 08:09 PM
airasia
With the strong sustained external Sales of plastic molding parts, and timely increased & expended in production capacities, backlog orders were successful to contributed into quarter turnover.

FY11 EPS may give surprise to hit between 55~60cents.
Payout ratio could also improved (vs last year 25.19%) as the group completed the facility expension.
20 Feb 2012, 11:38 PM
airasia
MACD, FastSTO maintained rooms for PE to stay above 11x.

20 Feb 2012, 11:44 PM
L3O86
TECNIC GROUP BERHAD ("TECNIC" or "the Company") - 25 SEN FINAL SINGLE-TIER TAX EXEMPT DIVIDEND madmadmad
29 Feb 2012, 07:16 PM
ILoveDividend
doh Bad result.
01 Mar 2012, 09:07 AM
ILoveDividend
Highlights for Q4 of FY2011:

Review of performance
The Group achieved revenue of RM210.3 million and profit after taxation of RM20.1 million for the current financial year to date as compared with revenue of RM 172.7 million and profit after taxation of RM RM16.1 million recorded in the preceding year’s corresponding period. Compared to the previous year, the higher revenue in this year was due to customers’ continuous orders especially electronic and electrical (E&E) plastic products. In respect of the profit after taxation, the amount has been affected by impairment of trade receivables of RM1.0 million and, tax and deferred tax of RM4.1 million which was due to timing differences on the capital expenditure incurred of RM16.6 million and impairment loss on trade receivables.

Quarterly results comparison
In respect of the current quarter, the Group recorded revenue of RM48.1 million and profit before taxation of RM4.4 million as compared with revenue of RM53.6 million and RM7.8 million profit before taxation recorded in the immediate preceding quarter. Decrease in profit before taxation for the current quarter was mainly due to impairment loss on trade receivables of RM1.0 million and increase in operating expenses as compared to the immediate preceding quarter.

Prospects for current financial year
During the financial year ended 31 December 2011, the Group continues to improve overall efficiency and product quality to maintain its competitive edge. The Group will also capitalise on its expanded production facility to diversify customer base, grow revenue and improve profit margins. Prospects remain promising and the Directors are cautiously optimistic of improving the overall performance of the Group for the next financial year ended 31 December 2012.
01 Mar 2012, 10:00 AM
gen_hwang
i hope no one chase the stock up last few weeks. 20c plunge isn't easy to swallow.
01 Mar 2012, 11:51 AM
ILoveDividend

doh It is painful, but i will keep it at least until next report.
01 Mar 2012, 11:56 AM

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