MINHO (5576)

19-Oct-2015

MINHO has been trading above its upward sloping 20-Day Moving Average which is a good sign. Furthermore, the next resistance level is quite far at 1.35 & 1.49 with a strong support of 1.24.After reaching a high of 1.35 on 6-Oct-2015; it went into consolidation mode as expected. It was observed that accumulation was in progress thereafter with price ranges from 1.24 to 1.31 with tapered  volume observed.

http://klse.i3investor.com/blogs/kianweiaritcles/84377.jsp

Minho was testing the MYR1.28 level as it recovers above the 100-day MAV line in its latest session. Traders may anticipate a bullish bias if this level is breached in the near term, with a target price of MYR1.49, provided the MYR1.35 level can be breached. In the meantime, the stock may move sideways if the MYR1.28 level cannot be breached. Support may then be found at MYR1.24 and 1.17, where traders can exit upon a breach.

MINHO’s main business is in wood products which covers timber trading, manufacturing, service and treatment, timber extraction as well as property development. They are also involved in Investment Holding activities.

Currently, the company’s PE is trading at 7.47 which is relatively discounted compared to many of its rivals with much higher PE. On 31-12-2014 it was traded at a PE of 19.32. With a very small capital base of only 109 mil; it is easier for the price to move up. Its 52-week range was 0.70 to 1.92. The highest being achieved in Aug this year. We can safely conclude that it is an UNDERVALUED STOCK at this PE of 7.47.

Quote from hongwei85 posting published  in I3Investor on 15 Oct 2015

“Till date (Aug 2015), Minho is greatly boosted with a strong underlying asset of freehold land. Most of it's land is still clinging on the valuation dated back to 2009 and 2010. Minho currently (Aug 2015) is sitting on NTA of RM 2.93. However, there are still a good number of revaluation reserved in their belt of freehold land in prime commercial area of Klang, which is near to Port Klang.

Minho had been also paring down it's debt level gradually.

While most of the revenue came from the local market, revenue from the US is ranked no.2 while UK no.3. The US market will continue to remain stable, while Minho can start to tap into the European market with the current (Aug 2015) stimulus program.

A stronger USD against the MYR will also translate to a better forex gain for the group. A stronger contribution from the European market will be able to see Minho ending in a stronger bottom line in 2015.

Minho is an interesting company to be look out upon, largely due to it's strong underlying assets, with NTA bearing approx RM 3.00. “