Faber posts RM32.47m net profit in 2QFY10

KUALA LUMPUR: FABER GROUP BHD [] net profit for the second quarter ended June 30, 2010 jumped to RM32.47 million from RM13.85 million a year ago, on the back of a 58.5% increase in revenue to RM270.22 million.

Earnings per share was 8.94 sen while net assets per share was RM1.16.

In said on Thursday, Aug 5, its integrated facilities management (IFM) business recorded a positive variance of RM106.8 million mainly due to business expansion in the UAE as well as higher variation orders, higher bed occupancy rates and additional new facilities at the government hospitals within the group's concession area.

In addition, the commencement of new housekeeping projects in India also contributed towards the positive variance, it said.

Faber said its property division recorded lower revenue by RM4.5 million mainly due to the completion of Phase 3 Laman Rimbunan, Kepong as most of the revenue for the project was already recognised in the preceding 2 years based on the percentage of work progress.

On its prospects for the current financial year, Faber said it was committed to improve contribution from all business divisions and focus its efforts on IFM business expansion, local and overseas.

It said the property division would improve its contribution to the group's revenue from the proposed new project launches in the second half of the year. 'We expect to meet our KPI targets for the year,' it said.

The company has targeted a revenue growth of between 12% to 15% for this year, and 15% to 18% return on equity (ROE).

Extracted from...

Faber Group (1368.KU) at Buy, with target price of MYR3.55

Faber Group (1368.KU) at Buy, with target price of MYR3.55.

Faber, which is top facilities management services to hospitals in Malaysia, has expanded overseas, with MYR216 million/year worth of contracts in Middle East, MYR20 million/year contracts in India. House says Faber is a proxy to resilient healthcare industry, with its local concessions expected to be renewed in 2011 for another 15 years; calls stock "grossly undervalued" as it has solid earnings visibility and is trading at only 2011 PE of 7.5X, with a cash-rich balance sheet. Stock last +2.6% at MYR2.37.

Extracted from yy's blog

DJ MARKET TALK: Maybank Rates Faber At Accumulate; MYR2.48 Target

0509 GMT [Dow Jones] STOCK CALL: Maybank Investment rates Faber (1368.KU) at Accumulate based on charts with upside targets at MYR2.48, then MYR2.70. Technical analyst Lee Cheng Hooi says stock of hotel owner, property firm hit its Wave 4 low at MYR1.52 in February with grossly oversold signals. "With the positive indicators like CCI, DMI, MACD, Stochastic and Oscillator supporting our upward view, Faber has very good potential to trend higher," says Lee. Stock +0.9% at MYR2.26. Next resistance at MYR2.50. On downside, support eyed at MYR2.24, then MYR1.91; recommends stop loss at MYR1.89. (kwan-por.lee@dowjones.com)

Faber to build on its presence in India, UAE

KUALA LUMPUR: FABER GROUP BHD [] aims to expand its presence in India and the United Arab Emirates (UAE — Abu Dhabi) this year as part of its strategy to grow its overseas business segment, the company said.


"These (India and Abu Dhabi) are the countries we are targeting to grow our hospital support services business. With the experience that we have, we should be able to secure more contracts," its managing director Adnan Mohammad said.

"The hospitals will look at our performance, and over the years we have a proven track record. We have been in the UAE since 2006 and the projects were issued on a year-to-year basis. They were renewed every year," he told reporters at Faber's vendor recognition ceremony on Thursday, March 11.

The company said that India and the UAE contributed 17% (RM140 million) to its total turnover in the financial year ended Dec 31, 2009.

The company earlier announced that it aimed to grow revenue by 12%-15% in its property and integrated facilities management (IFM) segments, focusing growth mostly in the IFM business for FY2010.

Faber's IFM business comprises its bio-medical engineering maintenance, cleansing, clinical waste management, facility engineering maintenance, linen and laundry and its maintenance management information system. This segment of the business accounted for 85% of Faber's revenue in FY2009.

Faber, which is also involved in developing PROPERTIES [], said that it was scouting to buy more land in the Klang Valley.

"The decision to buy will be dependent on location and pricing. We are continuously looking for opportunities for landbank, and it also depends on what sort of products (properties) we want to launch in the future."
The company had said it would launch three more high-end residential projects in the Klang Valley this year with a total gross development value of about RM426 million.

The property division contributed 15% to its revenue in FY09.

Written by Daniel Khoo

Faber aims for 12-15pc revenue growth

Faber Group Bhd, a leading player in the integrated facilities management (IFM) and property development sector, is targeting revenue to grow between 12 and 15 per cent this year. The group, a member of the UEM Group, recorded RM805.3 million in revenue last year, up 19.4 per cent from 2008's income of RM661.2 million.

Speaking at a briefing on Faber's 2009 fourth quarter results, managing director Adnan Mohammad said the board had set an internal target beyond the initial 12 to 15 per cent. Asked whether the higher target this year was achievable, Adnan said the prime wish of all companies was to exceed their targets and Faber was not an exception. "Our focus will still be on overseas operations as it was the major contributor to the IFM segment last year. "We will be moving according to our roadmap which is to enhance operations in United Arab Emirates (UAE) and India. "We are also looking at diversifying and expand our business into the IFM segment which is the major contributor to company revenue," Adnan said.

In the IFM segment, the group manages 12 hospitals with contracts worth RM18.6 million. "In the UAE, we manage infrastructure and residential projects with a combined contract value of RM202.1 million," he said.
In India, the company is involved in the IFM business with Apollo Hospitals. "However, we are now looking at capturing deals with seven 'Fortis' hospitals, worth RM10 million, in India by year-end. "In UAE, we are still waiting for the outcome of our tender for a low-cost residential project in Abu Dhabi," Adnan added.

In Malaysia, Faber will launch Phase 1A of Taman Desa, Phase 1A of Taman Desa and the fourth phase of Laman Rimbunan, Kepong. "The expected gross development project from these three projects is approximately RM495 million. "All these projects are focused on the middle and high-income group" he explained. -- Bernama

Standard & Poor's Recommendation: BUY

Asia Analytica Sdn Bhd's Recommendation: BUY

FABER GROUP BERHAD Quarterly results

Quarterly profit has more than doubled, but year to year the profit is half of 2008... alamak.

Fair value has been raised to RM2.94 (from RM2.69previously). Yesterday Faber closed at RM1.66 and the chart is uptrend all the way but too gradual (slow)!

Financial results here..

Faber – Concession agreement – Likely to be renewed

Faber – Concession agreement – Likely to be renewed Outperform Visit Note- Faber recently spoke at our GLC Day. In Oct 2009, the company had submitted its application for arenewal for the concession and is currently waiting for the reply from the Government, which would only beknown some time in October this year. We see little risk of Faber losing the concession given its politicallinks as well for its size and geographical reach.- Faber plans to expand in the healthcare sector, and is positioning itself for new opportunities includingowning or managing hospitals to broaden its income stream. Faber is already managing non-medicalservices in hospitals across Malaysia, India and United Arab Emirates, and therefore management believesthe company has the capability of moving up the value chain in the hospital business.- Faber is currently on track to launch new property projects in 2010, which consists of three propertylaunches, with total estimated GDV of approximately RM495m.- We maintain our earnings forecast for now. Our SOP fair value has been raised to RM2.94 (from RM2.69previously), after upgrading our target CY10 PER for the non-concession IFM business to 14x from 9xpreviously, in line with our target FY10 PER for KPJ Healthcare. Maintain Outperform.