Good morning.
Today, we feature a note on Boon Koon Group Berhad in our FundTech Radar – 3rd July 2018. The company focuses on the following activities:- rebuilt/new commercial vehicles (core business) and bodyworks; rental and fleet management services; and property development activities. Its operations are all confined to Malaysia.
Fundamental Stance
· It has been recording net losses since FY13, however, has successfully diversified its existing business into the property development business, which has contributed positively to the group in FY18.
· Net gearing ratio rose marginally to 0.13x as at 31 Mar 18 (vs. 0.1x in FY17).
· Datuk Seri Chiau’s (also the founder and deputy executive chairman of Chin Hin Group Bhd) equity interest in BKOON has now increased to a 28.6% direct stake — a step closer to the mandatory general offer (MGO) threshold.
· There is a turnaround plan for BKOON by diversifying into property development by partnering Aera Property, which has projects with a total gross development value (GDV) of about RM1bn in the pipeline.
Technical Front
Sideways consolidation with slightly upward trajectory.
Resistances: 0.46/0.58/0.76
Supports: 0.395/0.30/0.23
The above information is extracted from CIMB Research Report. For the full research reports, outlook and disclaimers, please logon to your account on www.itradecimb.com.my and click on <Research> Tab under Malaysia.
This FundTech Radar report is intended for educational purposes only. It represents a preliminary assessment of the subject company, and does not represent initiation into CIMB's coverage universe. It does not carry investment ratings and CIMB does not commit to regular updates on an ongoing basis.
3rd Jul 2018
Disclaimers: This distribution is by CIMB Investment Bank Berhad (“CIMB”) in Malaysia only. The views are our own as of this date and subject to change. No further distribution is allowed without our prior written consent. CIMB, its related corporations, affiliates and business partners make no recommendation, offer or invitation to transact in any securities, futures contracts or other instruments. Please make your independent evaluation, consider your own investment objectives and financial situation and consult your own professional advisers before participating in any transaction.
