Years Low: 0.935

Years High: 1.70

Received tips from 1 chatter say BJCORP will be RM 3 before MAY 2011. I write in my blog to check whether true or not?

And create a label as RUMOURS KLSE.

I already have 5 lots BJCORP at RM 1.10.

Buy at own risk.

Analyst Results report

Berjaya Corp 4Q FY10 results - much value remains (July 2, 2010)

By SJ Securities Sdn Bhd
Friday, 02 July 2010 13:22

Investment Highlights
BCorp released its 4Q FY10 results. Results were strong and above expectations. Revenue achieved 103.5% of full year forecasts while operating profit achieved 104.0% of full year forecasts. The group registered strong net profits for the quarter and full year.

Results. Revenue increased by 13.7% Q-o-Q and 25.0% Y-o-Y. Meanwhile operating profit increased a hefty 30.2% Q-o-Q and 73.4% Y-o-Y. As a result, the quarter showed strong net profits from losses previously.

Review. The stronger results was the result of operational improvement and higher turnover from the various key segments. The consumer marketing segment register higher turnover, while the property segment registered stronger margins and had successful launches.

Moreover the hotels and resorts, general insurance and stock broking segment performed well for the quarter. The motor business segment in particular showed strong growth and maintains a strong future outlook.

Strong performance from the automobile segment. Berjaya has achieved very strong automotive sales through the sales of Mazda cars. The distribution and retail is via its subsidiary, Bermaz Motor Sdn Bhd. Bermaz has in addition, recently launched the Mazda 2 model to its list of successful models. Meanwhile, the sales of Mercedes and Skoda remains healthy.

Leaner. Berjaya Corp intends to become leaner through divestments of none core companies while refocusing the proceeds to core companies which has greater potential. We are expecting earnings growth and ROE expansion for the company through the exercise.

Sports betting license pulled back. The pullback of the sports betting license had been disappointing for both the Berjaya group as well as the Malaysian economy. Were it to go through, BCorp earnings would have grown while government tax revenue would have increased substantially which would have helped bolster spending for the nation.

Previously the government had given the approval for the license on the 13th of January 2010 while fulfilling all the normal conditions for the license including the payment of RM10mil. However, Tan Sri Vincent Tan would continue to pursue the approval of the sports betting license in future.

Cosway. Cosway will officially commence operations in the U.S. on 15th July later this month. Subsequently, it will be next in Japan where the head office shall be situated in Nagoya (centre of Japan) to commence business sometime in September this year and Germany in November.

Cosway will aim at economies with high income areas such as Hong Kong, Taiwan, Korea, Russia and Turkey. Cosway is currently doing well in China as it has a range of 30,000 to
40,000 members. Cosway currently offers more than 1,200 SKUs. BJCorp believes that Cosway has a bright future and has the potential to make BJCorp worth a lot more.

Jeju Island project. The Jeju island project is still in progress. BJCorp has taken on a huge Korean group for partnership, while the Korean group will hold a stake between 20% - 30%, BJCorp will hold at least 51% stake. Both groups are looking forward to their development project. To recap, the project also involves the building of a resort with a casino.

Regulations however restricts locals from entering casinos with some exceptions. The Jeju local government will however lobby for entries of locals to the casino. Should that happen, there would be substantial growth potential for the Berjaya group. Nevertheless, the project itself should very profitable as the Korean partner had purchased the land for a very low price.

Joint venture with BYD. A proposal has been submitted to the government for a joint venture with BYD. BYD is a highly successful Chinese automobile manufacturer based in Shenzhen. In 2009, the company sold 448,400 cars in China. Moreover BYD has a very huge potential in the hybrid vehicle market due to its breakthroughs and background in battery systems.

A tie-up with BYD would be a huge catalyst to BCorp and would benefit the nation’s economy as well. A tie-up could potentially lead to a building of a plant in Malaysia which would benefit Malaysia in terms of skilled job creation and the creation of economic activity. The building of the plant would be a huge catalyst to BCorp’s earnings as well as enable it to realize value in its landbank.

Recommendation. We maintain our buy recommendation on BJCorp with a fair value of RM2.28. This is based on a discount of 35% on the fully diluted RNAV per share of RM3.50.

Latest Rolling 4 Quarter/Segment# Results

Quarterly Results

	Q1	Q2	Q3	Q4	Q1	Rolling 4 Qtrs

	07-2009	10-2009	01-2010	04-2010	07-2010
Turnover ('000)	1,611,690	1,617,638	1,660,417	1,887,330	1,744,567	6,909,952
Profit before Tax ('000)	184,260	178,414	-48,751	299,212	237,783	666,658
Net Profit ('000)*	40,880	52,804	-155,119	144,936	125,463	168,084
EPS (sen)**	1.040	1.340	-3.720	3.410	2.880	3.91
DPS (sen)	0.000	0.000	0.000	1.000	0.000	1.000
Special DPS (sen)	0.000	0.000	0.000	0.000	0.000	0.000