OCK Group Faces Revenue Setbacks, Analysts Lower Targets Amid Weaker 5G Rollout
OCK Group Faces Revenue Setbacks, Analysts Lower Targets Amid Weaker 5G Rollout
OCK's outstanding order book stands at approximately RM270 million, with around RM105 million attributed to TNS projects and the remainder to non-TNS initiatives, including recent data centre (DC) power supply contracts worth RM32.5 million. The company's established track record in public sector infrastructure projects, such as JENDELA and Universal Service Provision (USP) clawback projects, positions it well for securing future digital projects from the government.OCK Group Bhd's financial performance for the first half of 2024 fell short of expectations, driven by lower revenue in its Telco Network Services (TNS) segment. The company reported a 2Q24 core profit after tax and minority interests (PATAMI) of RM7.6 million, marking a decrease of 26% year-on-year and 25.5% quarter-on-quarter. This brought the 1H24 core PATAMI to RM17.8 million, representing only 31% and 33% of the full-year forecasts by analysts at RHB and market consensus, respectively.
OCK Group Bhd在電信網絡服務（TNS）板塊收入減少的推動下，2024年上半年的財務表現不及預期。該公司報告稱，24年第二季度稅後核心利潤和少數股權（PATAMI）爲760萬令吉，同比下降26％，同比下降25.5％。這使24年上半年的核心PATAMI達到1780萬令吉，分別僅佔盧比和市場共識的分析師全年預測的31％和33％。
In response to these results, RHB Stock Broking House maintained a BUY recommendation with a target price of RM0.82, indicating a potential 44% upside, while Kenanga Stock Broking House downgraded its recommendation from OUTPERFORM to MARKET PERFORM, lowering its target price by 30% to RM0.60. The downgrade reflects concerns about weaker revenue visibility and potential delays in the rollout of Malaysia's second 5G network and the JENDELA Phase 2 project.
針對這些業績，RhB Stock Broking House維持買入建議，目標價爲0.82令吉，這表明可能有44％的上漲空間，而肯南加股票經紀公司將其建議評級從跑贏大盤下調至Market PerFormy，將其目標價下調30％至0.60令吉。降級反映了人們對收入可見度下降以及馬來西亞第二個5G網絡和JENDELA第二階段項目的推出可能延遲的擔憂。
The weak performance in the TNS segment, attributed to the slow progress in 5G network rollout in Malaysia, has significantly impacted OCK's financials. The company recognised an impairment loss of RM7.6 million on trade receivables in 2Q24, an unusual move given its history of stable, recurring payments from major telco tenants. Despite the challenges, OCK's site leasing revenues remained stable, contributing 31% of total revenue, while the power solutions segment saw significant growth, with revenue more than doubling quarter-on-quarter.
由於馬來西亞推出5G網絡進展緩慢，TNS細分市場的表現疲軟，嚴重影響了OCK的財務狀況。該公司在24年第二季度確認了76萬令吉的貿易應收賬款減值虧損，鑑於其主要電信租戶一直穩定地定期付款，這是一個不尋常的舉動。儘管面臨挑戰，但OCK的場地租賃收入保持穩定，佔總收入的31％，而電力解決方案板塊實現了顯著增長，收入同比增長了一倍以上。
OCK's outstanding order book stands at approximately RM270 million, with around RM105 million attributed to TNS projects and the remainder to non-TNS initiatives, including recent data centre (DC) power supply contracts worth RM32.5 million. The company's established track record in public sector infrastructure projects, such as JENDELA and Universal Service Provision (USP) clawback projects, positions it well for securing future digital projects from the government.
OCK的未清訂單約爲27000萬令吉，其中約10500萬令吉歸因於TNS項目，其餘部分歸因於非TNS的計劃，包括最近價值3250萬令吉的數據中心（DC）電力供應合同。該公司在公共部門基礎設施項目（例如JENDELA和通用服務提供（USP）回扣項目）方面的良好記錄，爲確保未來的數字項目免受政府侵害奠定了良好的基礎。
Looking ahead, OCK is actively tendering for more DC-related jobs, with DC revenues contributing about 6% of group revenue year-to-date. The company also disclosed its Scope 1 and 2 emissions for the first time in 2023, as part of its environmental, social, and governance (ESG) initiatives. OCK currently operates 29 solar farms across Malaysia, with a combined capacity of 14MW, and is seeking additional solar projects.
展望未來，OCK正在積極招標更多與華盛頓特區相關的工作崗位，今年迄今爲止，華盛頓特區的收入約佔集團收入的6％。作爲其環境、社會和治理 (ESG) 計劃的一部分，該公司還在 2023 年首次披露了其範圍 1 和 2 的排放量。OCK目前在馬來西亞經營29個太陽能發電廠，總容量爲14兆瓦，並且正在尋求更多的太陽能項目。
Source: RHB, Kenanga
Title: A Light Quarter; Keep BUY, Lower Revenue Visibility
資料來源：RhB，Kenanga
標題：淡季度；保持買入，降低收入可見度
譯文內容由第三人軟體翻譯。