Faber Group Berhad ("Faber" or "the Group") is listed on the Main Market of Bursa Malaysia Securities Berhad under the Trading/ Services Sector. From a Malaysian hospitality concern founded 49 years ago, Faber has, following a successful restructuring exercise and strategic initiatives, grown into a leading player in the Integrated Facilities Management ("IFM") and Property Development sectors.
Today, Faber is one of the nation's largest companies providing IFM for Hospital Support Services, ranging from Facilities Engineering Maintenance Services ("FEMS"), Biomedical Engineering Maintenance Services ("BEMS") and Cleansing Services ("CLS") to Linen and Laundry Services ("LLS") and Clinical Waste Management Services ("CWMS").
Faber also provides professionally managed IFM services, maximising asset lifespan, functionality and reliability, in other sectors, local and international.
Faber’s has recorded a stable in its revenue and growth in its profits since FY2009.
|FY||Revenue ('000)||Revenue Growth||Net Profit ('000)||Net Profit Growth||Net Profit Margin|
Comparing Revenue and Net Profit growth rates, Faber’s Net profits show different movement, where revenue increase, but net profits decrease. While at FY2012, revenue has decreased 2.48%, the net profit has increased 106.53%. That is contributed by the good control in cost and expenses.
Faber’s Net Profit Margin has maintained around 10% level. From the chart, we see it decreased since 2009, but increase significant in FY2012. This shows the company aware and putting more effort on controlling cost and expenses.
|Current Assets (RM'000)||700,522||833,940||773,070||828,160|
|Current Liabilities (RM'000)||250,823||306,064||560,625||330,360|
Faber’s has managed to keep its current assets above current liabilities with a healthy level. From FY2011 to FY2012, current ratio increased substantially due to significant decreased in current liabilities and increased in current asset. These reduce the fixed cost incurred in borrowing.
For those concerned about dividend payouts, Faber’s Dividends have increased over the years, from RM0.06 in FY2009, to RM0.08 in FY2010 & FY2011, and RM0.30 in FY2012.
Faber’s PE Ratio has maintain a healthy level, from 7.07 in FY2009, 7.42 in FY2010, 9.71 in FY2011, to 5.39 in FY2012. A big drop in FY2012 shows that the price increased I a slower rate than the growth in company earning, and could be seen as a potential counter as investment.
|Net Cash Generated from Operating (RM'000)||90,458||260,112|
|Net Cash Generated from Investing (RM'000)||-16,857||5,647|
|Net Cash Generated from Financing (RM'000)||-35,673||-244,798|
|Cash and Cash Equivalents at End (RM'000)||322,373||340,357|
Faber’s has kept its record in generating positive cash flow from operating activities since FY2009. In FY2012, net cash generating from operating activities has increased substantially to (RM’000) 260,112, which due to the significant increase in Cash receipt from customer. Faber’s then use this cash to redeem back its RSLS (Redeemable Secured Loan Stock) and dividend payment. By reducing the interest component liabilities, the company is now having more flexibility in using its cash.
Although Faber facing challenges on most of the division, but with the Strong Net Cash on hand and relatively low debt component. Faber can utilize its cash with higher flexibility. Editor is optimistic on the growth of Faber and the dividend for the coming financial year end.
By the Young Investors Team