The Huat Project

Pentamaster- Good or bad quarter result?

Sipekhuat
Publish date: Fri, 17 Nov 2017, 07:04 AM
Pentamaster Quarter Result- Good or Bad? 
 
Penta just posted a result, with HISTORICALLY HIGH Revenue of 83.3 million compared to 40.7 million in the corresponding quarter last year. This represent an increase of 104.8%!!! This increased revenue was not due to any one off disposal, this is from the sales from automated equipments and smart control solution system segment. Penta is in the automated equipments for quite some time now. And , KESM baru want to join the party!! 
 
Penta earning per share (eps) dropped due to the non-recurring expenses of RM4.7 million for their listing in HK. If they did not include the listing cost in this round of results, it means they get RECORD HIGH PROFIT of 14.1 million ! But due to the above only 9 million is shown ON PAPER. The earnings of Penta is shown:
 
Q1 : 9
Q2 : 11
Q3 : 14.1 (but written 9) 
Q4 : if they can do 14mil again (just remain and don't do any thing extra)
 
This means this year they would have done total 48million , translating to an EPS of 0.32.
 
Assume Penta is traded on a PE of 20, Penta would have been worth RM6.40. But, will the market trade a super Growth stock with just PE20? Vitrox currently is PE 32.
 
Also, just the money used to do listing in HK, after IPO, a big pile of cash will be collected which will mean SPECIAL DIVIDEND potentially in future. No need long, 6 months also enough. 
 
Now I have highlighted all the facts. Should you take action or just watch us fly by, it is up to you.
 
 
 
 
 
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Disclaimer: Postings here are for sharing/ educational purposes only. Each individual are responsible for your own decision/ investment.
 
 
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