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Author: richDad1   |   Latest post: Fri, 12 Jan 2018, 09:08 AM

 

(richDad): HENGYUAN - 3 Charts on Balance Sheet means DIVIDEND SOON?

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INTRODUCTION:

Balance sheet is an important things to check a Company's health status. High net profit must be accompanied by higher cash and better still lower debts. I did my balance sheet test on HENGYUAN and I believe that you guys should look at these 3 charts.

 

CHART 1: CASH HAS INCREASED IN THE PAST 2 YEARS

 

 

 

CHART 2: BORROWINGS HAS DECLINED IN THE PAST 2 YEARS

 

 

CHART 3: AS A RESULT, NET GEARING HAS DECLINED

 

CONCLUSION: DIVIDEND SOON...

With improved cash level and lower borrowings, HENGYUAN should announce dividend by end February. Assuming that the dividend is really announced, its PE is likely to increase to at least 8x.

 

From the current 5x to 8x PE, we are talking about 60% upside...

PE at 5x = RM3.33 * 5 = RM16.65 (about the current level)

PE at 8x = RM3.33 * 8 = RM26.64 (if the dividend is announced with at least 10% payout at 33 sen)

I still maintain my Target Price of RM20 by using 6x PE as I am waiting for the dividend to be announced.

All in, looking at the upside and downside, I choose to keep HENGYUAN as there is high chance it will announce dividend.

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Labels: HENGYUAN

Related Stocks

Chart Stock Name Last Change Volume 
HENGYUAN 12.00 -1.80 (13.04%) 11,715,800 

  2 people like this.
 
probability the 1.26 Billion worth oil inventory just raised its value by 17% by the end of Dec17 (67USD/brl) versus end of Sept17 (57USD/brl).

Thats a whopping 200 Million increase in its value.

Encashing just 20% of this oil would make HY net cash instead of net Debt at the end of 2017.

This is not even considering its earnings for the same period Q4 2017.
12/01/2018 21:45
dannychan Oh ya. Then buy more now
13/01/2018 07:35
newbie5354 Dividend where to find Bursa announcement?
13/01/2018 19:10
newbie5354 Dividend? Which Chinaman like to share profit?
13/01/2018 19:12
cheoky Starting with shangdong governor 1st to share profit?
13/01/2018 19:14


 

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