SKP Resources Bhd (SKP) is engaged in investment holding and provision of management services to the subsidiaries. SKP is principally involved in manufacturing of plastic products which is carried out in Malaysia. The Company's subsidiaries include Syarikat Sin Kwang Plastic Industries Sdn. Bhd., Goodhart Land Sdn. Bhd., Goodhart Ind. Sdn. Bhd., S.P.I. Plastic Industries (M) Sdn. Bhd., Sun Sparkle Sdn. Bhd. and Tan Brothers Business Machines (Segamat) Sdn. Bhd.
this counter is a very solid counter in term of cash flow and management.
-If assume that the next coming EPS is bad, around 0.5sen, then the PE is 10.42 according to today price @0.305. -Then the dividend is around 1.5sen, which is around 4.9% DY. -Cash in hand 0.11sen, NTA=0.24. -In the Asset, the price for the land owe by SKPRES is only around RM38 per square feet. -Consistently spend in capital expenditure (meaning buying machine, asset and property) to expand the business to cater for bigger business. -Dato' Gan own deem/direct 60%++ mother and 16%++ warrants. -Tabung Haji own 10% mother share (estimated bought at 0.345), they need to sell it in 6 months time.
To play safe, buy <0.30 or lower. Once the business come back, it will shine again.