OCK Group Bhd is founded by Mr. Ooi Chin Koon and listed on 2012. Mr Ooi graduated from Trine University, Indiana, United States of America, Bachelor's Degree in Electrical and Electronics Engineering in 1996. He began his career in 1992 as an Electrical Engineer at Cobrain Holding Sdn Bhd. In 1999, he founded OCK Setia Engineering Services as sole propretorship and later expanded the business with the incorporation of OCK Setia Engineering Sdn Bhd in 2000.
OCK Group has ventured into four major business:-
1) Telecomunication Network Services
-Cover services in all six segments of the telecommunication network services market:-
a)network planning
b)design and optimization
c)network deployment
d)network operations and maintenance
e)energy management
f)infrastructure management
-Have Network Facilities Provider (NFP) licensee (able to build, own and rent telecommunication towers and rooftop structures to the telecommunication operators in Malaysia)
-More than 90% of the revenue came from this segment.
2) Green Energy and Power Solutions
-This industry increasing rapidly in Malaysia
-Actively constructing solar farms
-Supplying power generation equipment for commercial, retail and factory buildings
-Installation, commissioning and testing services
3) M&E Engineering Services
-Provides mechanical and electrical services to housing development projects, commercial high-rise buildings, factories, infrastructures, airports, medical centres and hotels.
-Providing project management, supply and installation of most mechanical and electrical services.
4) Trading of telecommunication
Annually Earning
Year (31 Dec)
|
2013
|
2014
|
2015
|
2016
|
Revenue(‘000)
|
150,258
|
187,490
|
318,574
|
407,111
|
Net Profit (‘000)
|
12,902
|
16,358
|
24,679
|
25,799
|
Profit Margin (%)
|
8.59
|
8.72
|
7.75
|
6.34
|
EPS (RM)
|
0.048
|
0.0475
|
0.0457
|
0.031
|
DPS (RM)
|
0
|
0
|
0.006
|
0
|
DPR(%)
|
0
|
0
|
13.13
|
0
|
ROE (%)
|
7.12
|
5.45
|
4.53
|
3.16
|
Price (31 Dec)
|
0.463
|
0.698
|
0.67
|
0.76
|
P/E (31 Dec)
|
9.65
|
14.69
|
14.66
|
24.52
|
NTA (RM)
|
0.29
|
0.35
|
0.44
|
0.50
|
Price to book value
|
1.6
|
1.99
|
1.52
|
1.52
|
Revenue and net profit for OCK Group Bhd increased continuously from year 2013 to year 2016. Even though net profit increase but EPS decrease. This is because they carried out private placement, bonus issue and right issue in year 2014 to 2016. OCK utilize the fund from private placement and right issue on expanding their business overseas. In year 2014, OCK acquire PT Putra Telecommunications in Indonesia. In 2015, OCK acquire 920 telecommunication towers contract from Telenor Myanmar. In 2016, OCK acquire SEATH which owned 1938 towers in Vietnam.Profit from SEATH should be start showing out in Q1 2017.
Net Cash/ Net Debt (Annually)
Year (31 Dec)
|
2013
|
2014
|
2015
|
2016
|
Total Cash (‘000)
|
24,920
|
73,762
|
163,821
|
127,288
|
Total Debt (‘000)
|
60,435
|
64,488
|
89,648
|
146,245
|
Net Cash/ (Net Debt)
|
(35,515)
|
9,274
|
74,173
|
(18,957)
|
On 31 Dec 2016, OCK is currently net debt ( total debt more than total cash). For a company which is expanding their business, net debt is acceptable.Cash flow from operating activities is showing positive which means they earn their money from their core business. Total fund used on purchase of property, plant and equipment from 2012 to 2016 is
Year
|
RM
|
2012
|
6.572
|
2013
|
34.271
|
2014
|
4.735
|
2015
|
22.569
|
2016
|
318.907
|
Quarterly Earning
Quarter
|
31 Mac 2016
|
30 Jun 2016
|
30 Sept 2016
|
31 Dec 2016
|
Revenue (‘000)
|
78,443
|
114,011
|
101,919
|
112,738
|
Net Profit (‘000)
|
3,710
|
5,457
|
5,457
|
11,175
|
Profit Margin (%)
|
4.73
|
4.79
|
5.35
|
9.91
|
EPS(cents)
|
0.47
|
0.69
|
0.66
|
1.28
|
Total EPS (4QR)
|
4.46
|
4.18
|
3.91
|
3.1
|
Price
|
0.775
|
0.81
|
0.795
|
0.76
|
P/E
|
17.38
|
19.38
|
20.33
|
24.52
|
NTA(cents)
|
0.44
|
0.44
|
0.48
|
0.5
|
Price to book value
|
1.76
|
1.84
|
1.66
|
1.52
|
Net Cash/Net Debt (Quarterly)
Quarter
|
31 Mac 2016
|
30 Jun 2016
|
30 Sept 2016
|
31 Dec 2016
|
Total Cash (‘000)
|
139,555
|
120,617
|
137,369
|
127,288
|
Total Debt (‘000)
|
81,974
|
96,173
|
140,819
|
146,245
|
Net Cash/ (Net Debt)
|
57,581
|
24,444
|
(3,450)
|
(18,957)
|
Share capital changes in year 2014,2015 and 2016
 |
| 2014 |
 |
| 2015 |
 |
| 2016 |
PROSPECT
OCK and its local partner King Royal Technologies Co Ltd in Yangon, Myanmar managed to successfully build over 600 telecom towers.
OCK's 60% subsidiary, OCK Vietnam Towers Pte Ltd completed the acquisition of Southeast Asia Telecommunications Holdings Pte Ltd (Seath), which is Vietnam's largest independent tower company. Sealth owns 1,983 telecom towers in Vietnam.
CONCLUSION
With RM 0.92 (closing price on 3/4/2017), PE ratio is 29.68 which is consider overvalue. Price to book value will be 1.84 which is also consider overvalue.From my opnion, if OCK can achieve 30% growth of net profit in Year 2017, then it can be still acceptable for P/E and P/B ratio.Is it still able to buy now? I don’t know! This is a company that are not giving out dividends. So if you are looking for dividend company, this is not the company. If you are looking for growing company, OCK is the company that u looking for.
DISCLAIMER
Everything above is for sharing purpose only.
This is NOT a buy or sell call.
BUY OR SELL AT YOUR OWN RISK !!!
We have no responsibility on anything upon reading this article.
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