Stock News 2010: EEI posts P136-million profit

Image by mindfrieze via FlickrLISTED construction firm EEI Corp. has posted relatively flat profit in the second quarter as a decline in service revenues tempered the double-digit growth of its main construction business.
In a filing, the Yuchengco-led firm said net income grew 1.3 percent to P136.32 million. The company said first-half net income grew 5.8 percent to P308.56 million.
Based on its financial statement, EEI’s revenues grew at a slower pace to P1.64 billion, from 1.69 billion the second quarter of 2009. First-half revenues likewise declined 5.71 percent to P3.12 billion from its year-ago level as the service income fell almost 53 percent.
Construction contracts, which accounted for 75 percent of revenues during the first semester, rose 19 percent to P2.35 billion. Costs were also contained as service revenues dropped EEI said.
EEI said it remains “confident” on its year-end targets. “The company continues to pursue new prospects for both local and foreign-based projects as there appears to be renewed opportunities in mining, power, and other industrial construction,” EEI said. The company expects growth will continue to come from projects in the Middle East.  
During the first semester, the company won contracts for an additional  project in Naia Expressway and its related road project, package 4C Phase I for Department of Public Works and Highways and the construction of the RCBC Savings Bank and Corporate Center in Fort Bonifacio.
It was also awarded the contract to build the Sun Residences of SM Development Corp. in Quezon City, the construction of the Phoenix Semiconductor Plant in Clark, Pampanga, and the atmospheric storage facilities for Petron Corp.
Miguel R. Camus

August 18, 2010 19:36

http://businessmirror.com.ph/index.php?option=com_content&view=article&id=29111:eei-posts-p136-million-profit&catid=24:companies&Itemid=59

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Stock Analysis 2010: Long-term Buy recommendation on EEI Corp.

Image via WikipediaEEI Corp.
Recommendation: LONG-TERM BUY
ANALYSTS tagged Yuchengco-led EEI Corp a "long-term buy" as it is considered one of the second-liner stocks that is likely to boom this year given its diversified business operations.
For one, Wealth Securities, Inc. analyst Bernard C. Aviñante said consumers’ continuous demand for properties would keep EEI’s local business buoyant.
Angping & Associates, Inc. analyst Elizabeth S. Abadillo concurred and said that despite investors’ cautious stance amid the upcoming May elections, EEI Corp. remains a "good" stock to watch out for given its growth potential.
"The property sector remains in demand so I think it could create an upside bias on EEI’s stock price although the movement would only be limited." Ms. Abadillo said. "But apart from its local business, the company continues to be liquid due to its overseas operations," she added.
Mr. Aviñante said EEI’s projects abroad would reflect positively on its financial health.
Since 1974, the company has ventured into petroleum, power plants and industrial installations in the United Arab Emirates and Saudi Arabia.
"Through its 49%-owned joint venture firm Al Rushaid Construction Co., [EEI] has an orders book backlog totaling $338 million (or P15.12 billion) as of February (this year). Completion of these projects is spread until 2012," Mr. Aviñante said in a research paper.
"These engineering works are mainly in vital industries such as oil and gas and power generation, which are pillars of growth for (Saudia Arabia)," he added.
With Saudi Arabia ’s projected budget of about $300 billion in the aforementioned industries, this would likely present opportunities for EEI. "Capturing even a small fraction of that pie would significantly push its bottom line," Mr. Aviñante said.
He forecasts EEI’s income to surge by 38% to P777 million this year from the unaudited amount of P563 million last year, while revenues are expected to jump by 34% to P8.442 billion by the end of the year from P6.3 billion in 2009. The figure, however, is 8.14% short from the company’s 2008 revenues of P9.19 billion.
But analysts noted a possible growth in the company’s revenues and income in the coming years by the time its business operations here and abroad are reflected into EEI’s financial report.
"At least its first quarter report would give a glimpse of the company’s performance this year. I think it would be released by the first week of May so investors will have to watch [out for] that," Ms. Abadillo said. Meanwhile, in terms of valuation, EEI is currently trading at a 4.5x price-to-earnings ratio.
Mr. Aviñante said EEI is targeted to reach the 7x multiple by the end of the year, with a P5.25 apiece fair value estimate. It closed at P3.30 per share. Ms. Abadillo said the best price to accumulate the stock is between P3.10 to P3.15 per share.
Ma. Aizl Camille B. Cabarles
http://www.bworldonline.com/Research/stockpicks.php?id=0610

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Stock News 2008: EEI Corp. secures Qatar contract

Image by webzer via FlickrMANILA, Philippines - EEI Corp., one of the Philippines’ largest construction companies, secured a contract in Qatar.
The company, subsumed under the Yunchengco Group, won a bid for the $12 million Qatargas 3 and 4 Onshore Project for GAMA Qatar Company under the Chiyoda-Technip joint venture, EEI said in its disclosure to the Philippine Stock Exchange (PSE). It is expected to undertake pipe erection work of inlet facilities.
Since construction is expected to begin by January, the company will deploy an estimated 1,500 workers in the next few months.
Currently, more than half of its 18,000 workforce is deployed abroad. An estimated 1,400 are assigned in a New Caledonia nickel mining project while 8,000 are in Saudi Arabia, engaged in various projects under the Al Rushaid Construction Co.
The company’s foreign project order backlogs is estimated at $391 million.
Earnings of EEI reached P363 million for the first nine months, 76 percent higher than profits reported during the same period last year.
Consolidated revenues for the nine-month period hit P5.52 billion, 41 percent higher than last year’s P4.6 billion owing to its overseas business.
Shares of EEI fell P0.02 to P0.72 during Thursday’s trading at the PSE.
12/04/2008 | 06:02 PM
http://www.gmanews.tv/story/137521/EEI-Corp-secures-Qatar-contract

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