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Author: KLCI King   |   Latest post: Mon, 22 May 2017, 12:00 AM

 

FRONTKEN - Tech Stock with Target Price 55 cents, PE15 times & 100% upside

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Now tech stock is easily 15 times PE ratio. Frontken is going to release its quarterly report soon, guess what will be the profit?

if EPS 0.5 cents, annualised 2 cents, target = 30 cents
if EPS 1 cents, annualised 4 cents, target = 60 cents
if EPS 1.5 cents, annualised 6 cents, target = 90 cents


Click below link to study yourself:
https://klse.i3investor.com/servlets/stk/fin/0128.jsp

 

"Now semiconductor industries is like a hot cake and not to forget, oil & gas industries is recovering too. Frontken would benefit from it" - nicky11

 

Market cap = 300mil
Cash in hand = 103.6mil
Borrowings = 28.7mil

This is real cheap, cepat cepat lah, apa mahu tunggu lagi? Beli sahaja

Tapi, kalau beli sekarang nanti rugi, janganlah menangis, lu tak ada bagi saya duit sebelum atau selepas ini.

 

 

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Labels: FRONTKN

Related Stocks

Chart Stock Name Last Change Volume 
FRONTKN 0.265 -0.015 (5.36%) 47,922,400 

  5 people like this.
 
KLCI King FRONTKEN - Target Price 55 cents, 100% upside
19/05/2017 15:17
KLCI King Market cap = 300mil
Cash in hand = 103.6mil
Borrowings = 28.7mil
19/05/2017 17:12
Apollo Ang already up almost 100% since oct,maybe still can up but no more another 100%, maybe 10% can lah,be more relistic
19/05/2017 17:15
Skipz Yang where were you guys when it was at 15 sen?
19/05/2017 17:15
KLCI King It does not matter where were I, it does matter if I make money or not

Apollo Ang already up almost 100% since oct,maybe still can up but no more another 100%, maybe 10% can lah,be more relistic
19/05/2017 17:15

Skipz Yang where were you guys when it was at 15 sen?
19/05/2017 17:15
19/05/2017 17:25
KLCI King If you are not happy with your profit, that's your problem, who cares how much you made? I care only if I make money or not
19/05/2017 17:26
KLCI King One thing also very funny, what the heck on earth if I buy now? Anything wrong?

Oh, forget to tell, I was busy holding Ekovest warrant when the Frontken was 15 cents, now you know why I wasn't in Frontken.
19/05/2017 17:31
KLCI King If Penta can go up from 75 cents to RM3.50 in one year time, why not for Frontken?
19/05/2017 17:36
KLCI King Provided Frontken can deliver better results in coming quarters
19/05/2017 17:38
Op3rs so what is wrong by buying now?

who say up 100% dy cannot up another 100%?
19/05/2017 17:42
nicky11 The profits of this company is improving QoQ, that's why just up 100% ma... What is the logic cannot buy after up 100% .. As compare with others penny stock, Frontken have better fundamental​ and the price was not goreng-ed too much
19/05/2017 19:34
Apollo Ang fronken not penta, if every counter can be like penta whole msia nobody working,cannot compare like that.mark my words in 2 years fronken also will not be double from now.
19/05/2017 22:26
KLCI King Mark down your words first, it's no harm done to me anyway, because it won't go up or down because of you.

Apollo Ang fronken not penta, if every counter can be like penta whole msia nobody working,cannot compare like that.mark my words in 2 years fronken also will not be double from now.
19/05/2017 22:26
19/05/2017 22:51
nicky11 Wow, I see my name in your post.. Hahaha
19/05/2017 23:25
KLCI King Your comment sum it up, nicky11, I love it.

The major contributions will be from Taiwan & Singapore while Malaysia is to be stable.
19/05/2017 23:28
nicky11 From the annual report, Taiwan segment contributed ~48% of Frontken total revenue. Malaysia & Spore just 27% & 15%. One thing very interesting is Taiwan New Dollar(TWD) is very strong recently. That is a big forex gain!
19/05/2017 23:49
KLCI King Nicky11, I have made up the last 4Q segmental analysis:
http://klse.i3investor.com/files/my/blog/img/bl2569_frontken_segment.jpg
19/05/2017 23:58
KLCI King You are definitely right, nicky11, Taiwan New Dollar(TWD) has been very strong against RM during the period 1 Jan to 31 Mar.

http://klse.i3investor.com/files/my/blog/img/bl2569_twd_vs_rm.jpg

http://www.xe.com/currencycharts/?from=TWD&to=MYR&view=1Y
20/05/2017 00:09
cutemother Too bad I think it's a little too late to buy in
20/05/2017 00:21
nicky11 Hi KLCI King, you are hardworking in compiling the data. Haha,I directly refer from Frontken annual report-year 2016 , pages 12 for revenue distribution. Sorry, I dunno how to upload photo.

REVENUE(customer location) 2016:RM’000 ; weighting (%)
Taiwan: 125,893 ; 48%
Singapore: 38,408 ; 15%
Malaysia: 71,166 ; 27%
Philippines: 18,061 ; 7%
Others: 8,316 ;3%
Total: 261,844 ; 100%
20/05/2017 00:23
20/05/2017 00:24
KLCI King Thank you for your sharing & great to talk to you, nicky11, got to sleep, cannot tahan anymore, good night.
20/05/2017 00:26
nicky11 Haha, good night. Thanks for your great sharing.
20/05/2017 00:27
ilovehits KIMHIN if annualised 9c, based on 12 PE ratio, TP 4.32. Potential upside 101%.

http://www.malaysiastock.biz/Corporate-Infomation.aspx?securityCode=5371
20/05/2017 12:06
ilovehits No kidding. KIMHIN is a hidden GEM.

(4.32 - 2.15) / 2.15 x 100% = 101%
20/05/2017 12:09
WealthWizard Good timing of releasing this article, the company looks promising
20/05/2017 14:09
Asia88 Do you even know what the company is doing? How many percentage of sales come from semi-conductor segment? How many percent come from oil and gas industry? Which area of oil and gas they are in? Write an article to push the price? Haha
20/05/2017 16:35
nicky11 Below is Year 2016 SEGMENTAL REVENUE – BY INDUSTRY (RM’000)
Oil & Gas : 50,374
Power Generation: 3,182
Semiconductor: 185,162
General* : 23,126
TOTAL: : 261,844

From that statistic, semiconductor and Oil & Gas contributed ~71% and ~19% from Frontken total revenue.

Their service includes:
1. Mechanical Restoration & Overhaul,
2. Coating, Hardfacing & Plating,
3. Precision Manufacturing
4. Plant Engineering & Construction
5. Machining & Grinding
6. Precision Cleaning

For further detials, you may refer from annual report year 2016 Pages 5 & 6:
https://cdn1.i3investor.com/my/files/dfgs88n/2017/04/25/1505928037--1091517766.pdf
20/05/2017 16:58
KLCI King Kakashit has written great article about Frontken & its businesses, I won't waste time to repeat writing it. Pls refer below:

http://klse.i3investor.com/m/blog/kakashit/113559.jsp
20/05/2017 17:07
R3D3 Great stuff!
22/05/2017 08:03
Ezra This is a constructive opinion and criticism. Feel free to ignore if disagree.

From a neutral standpoint, simply slapping a industry PE 15 to any technology stock is extremely dangerous. If such method is applied, then all technology stocks in Bursa would have been highly valued at PE 15 for a long time. The fact that it doesn't clearly shows you something.

First we must ask ourselves, on what basis should Frontken command a PE of 15?
Is the business lucrative? Is it a market leader? Does it have moats or other competitive advantage that others doesn't?

Second, what is the return of investment or equity? In layman words, if I invested Rm 1 in this company, how much do I expected to earn back on my RM 1?

Remember, high valuation equals to high expected future returns. If the expected future returns cannot deliver, then it does not deserve a high valuation.

By asking ourselves the right question, only can we get the right answer.
22/05/2017 15:55
KLCI King Let's market decide, what I think or what you think is not important. I can simply shout at target price of RM1, it does not matter.

If one never read reports & do his analysis before buying, all advices are useless.
22/05/2017 22:07
KLCI King One more thing to share, no one will look at the counter even price traded at PE 6 times during BEAR market & everyone will chase the same counter even price traded above 15 times PE during BULL market.

I refer to Penta. The key is to deliver results.
22/05/2017 22:12
KLCI King All in all, it is subjective & very easy, if you think it is high, don't buy. If you think it will go up further, why not?
22/05/2017 22:13
Ezra 1. "Let's market decide, what I think or what you think is not important. I can simply shout at target price of RM1, it does not matter.
If one never read reports & do his analysis before buying, all advices are useless."

Ans: "In the short run, the market is a voting machine but in the long run, it is a weighing machine." - Benjamin Graham

If you have been in the market for a long time, you will know that the market flip flop all the time. From extreme bearish to extreme bullish.

What the market decide in the short term may not be the true reflection of a value. Depending on the judgement of other people in the market (a.k.a market forces) is no different in betting in a horse race - where the payout are dependant on how many people bet on it. It is the worst imaginable way to build your wealth stably and securely.

That is why you must have a thorough analysis of stock, and stick with it till the end, even if the market disagrees with you in the short run.



2. "One more thing to share, no one will look at the counter even price traded at PE 6 times during BEAR market & everyone will chase the same counter even price traded above 15 times PE during BULL market. "

That is why so many people missed the fortune at the bottom of a bear market, and also why so many crashed and burned at the peak of a bull market.

"Only when the tide goes out do you discover who's been swimming naked." - Warren Buffett

Only by asking ourselves the right question, can we have the right answer - the true value of the stock. Like you say "I can simply shout at target price of RM1, it does not matter.", but what is the point if your target price is wrong itself? Food for thought, my friend.
23/05/2017 00:50
Ezra Anyway, these are just my advices from years of experience.
Feel free to ignore. I will also stop commenting.
Happy investing :)
23/05/2017 00:53
KLCI King To success in stock investment, one must read books, news, reports & do homework, as well as accumulating buy sell shares experience (practical experience).

But the truth is, no matter new or old birds, not many of them have time/habit to read books/reports/financial statements, they prefer to trust the news that they heard.

I have more than 25 years investing experience & didn't make any killing mistakes in 1998, 2001 & 2008, so I understand your good intention of sharing, but I doubt many will truly understand it. That the reason of 10% & 90% story.
24/05/2017 01:15
KLCI King Sometimes it is not difficult to succeed in stock investment, but the attitude make the difference.
24/05/2017 01:18
Hitman hold tight2..55sen TP..lol..hahaha
24/05/2017 11:59


 

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