Great Fundamental Investment

Good value investments are hard to come by these days, there are still some hidden gems that are yet to be discovered among the large pool of stocks in Bursa. Today we explore the potential of PT Resources Berhad (PTRB - 0260).

Fundamental

• Low PE Ratio of 6.xx - it is currently sitting almost at a record low figure
  

• Profitability - with PBT of 18mil (increased of 124.14% YOY) last released quarter report, possibility increased demand of exports to China due to banned Japanese seafood - China has since diverted it's attention to source seafood from South East Asia. However, the best might yet to come due to the festive season of Chinese New Year. A brief study also shows that PTRB is 1 of only 3 companies in Malaysia that is permitted and licensed to export a couple of dried seafood.

• Growth - despite heavy reinvestment of cash from the company last year in it's facility and machinery to increase it's production and storage, the company still generated a very well return with PBT of 37mil. With increased capacity towards the right direction, it is safe to foresee 2024 will be the year to watch for PTRB.
• Dividend - just before the released of the astonishing last quarter of 18mil PBT, a first interim dividend of RM0.65 cent was announced. If the result could be kept up to level, it is safe to say there might be another dividend round around the corner and quite possibility higher.
• Sector - being 1 of the largest exporter of seafood in the country, food security has also always been a hot topic in global market. With Malaysia's record low currency rate, it is expected a large volume of foreign investment that might pour into the local market for bargain hunting.
• Shareholders - A study of the annual report also shows strong institution shareholders that are currently onboard with position leading by founder himself who did buyback and has a total shareholding of 74% (shows strong confident in his own establishment) and the legendary Ronie Tan being the second largest shareholder. Notable parties like Felda, JP Morgan and couple of sound financial backing funds can also be seen in the Top 30 shareholders list.

Conclusion

It is safe to say, with the outperforming result release year to year, the company's growth remain strong despite only IPO'd not long ago. With immediate technical resistance of recent high RM 0.570, a breakout above RM 0.500 towards RM 0.550 might well be around the corner pending the highly anticipated next quarter result. Targeted to reach RM 0.605 - RM 0.615.

​PTRB (0260)​