koko888
Stocks Picks (2017) by The Edge ; EG industries
The Kedah-based company is a growth stock despite the current harsh economic climate. A new substantial shareholder brought change to the company, enabling it to climb the value chain by providing box-building and reap the benefits.Box-building refers to end-to-end manufacturing services that start at designing and end at shipping of the completed products to end users.
EG Industries has graduated from being just an original equipment manufacturer.It now serves world-renowned electrical and electronic brand names in several industries, including consumer electronics, ICT, medical, automotive and telecommunications.
In FY2016 ended June 30, EG Industries posted a pre-tax profit of RM19.7 million, down from RM23.63 million the year before.However, it had booked a disposal gain of RM15.38 million in FY2015.Excluding the extraordinary gain, the group’s pre-tax profit would have been RM8.24 million that year.
The company’s growth momentum continued in its 1QFY2017, with pre-tax profit rising 41.6% year on year to RM7.14 million.
“We like EG Industries for its gradual transition into a vertical integrated EMS (electronic manufacturing service) player through its continuous expansion into the higher margin, full-assembly services segment, and its projected three-year core earnings CAGR of 40%,” says UOB-Kay Hian.
The research house sees the company’s net profit ballooning to RM30.6 million, or 11.4 sen per share, in FY2017 and RM36.7 million, or 13.6 sen per share, in FY2018.
EG Industries’ share price was hovering in a tight range of 80 sen to 90 sen for most of the year.
注: 如果照UOB預测2017及2018財政年,净利可达30.6m及36.7m来计算,不包括W在內,EG的股票數额为211.600,那2017財政年eps=14.5分,以12倍本益比计算,合理价=Rm1.74,2018年財政年eps=17.3分,合理价=Rm2.08.
除非基本面變坏,不然以八十多仙買进,上涨空間很大,下跌空間很小,认为是低风险的投資.
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2 people like this. Showing 21 of 21 comments
What happened to the money from last years rights? Like a China listed company now
2016-12-28 11:45
kalau pakai "right issue", memang sudah comfirmed tak ada duit....macam xinquan kaunter dari china...nak pakai duit dari pelabur bagi menguruskan activiti mereka...tak ada dividen langsung dari EG... lepas pakai duit dari right issue, cakap mengalami kerugian dan macam-macam cerita untuk cover up...tengoklah nanti apa berita yang terbaharu...haha....
2016-12-28 12:12
Look at their margin so ridiculously low. I put in FD get better return. Do you want to invest with 3% margin of profit?
2016-12-28 18:18
collect money from right issue...then don't want to share profit with shareholders...then no dividend to share with all the investors after they make profits..how to trust this type of company? this type of management, only think about themselves...i learned my mistakes to trust this type stock before....now i won't ever trust anymore...once bitten, twice shy.... better put money on profitable stock with higher dividend or FD for better return...right issue??? no way....
2016-12-28 22:08
dividen tak mahu bagi....mana mungkin syarikat yang besar macam ini sangat kedekut...nak right issue, untuk apa? ada masalah aliran tunai atau "revenue" tak cukup??? kalau tengok laporan kewangan semuanya okay...ada 42% peningkatan keuntungan....tapi tengok "profit margin" kat graph chart...memang cukup mencurigakan....terlampau rendah...macam nak muflis/bankrup...haha..
2016-12-28 22:29
Who says they don't want share their profits with small shareholders? Maybe they will give you guys 1 cent dividend after issue rights or private placement.
2016-12-28 22:32
memang sah penulis/author ini tak faham faham apa itu "a good management team"....kalau sekadar cakap pasal keuntungan, memang boleh tulis panjang lebar... tapi kalau cakap pasal kejujuran dan berkongsi keuntungan...tak ada langsung dalam rencana penulisan ini....nak tipu orang....haha...
2016-12-28 22:37
Substantial shareholder sell EG
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5300645
http://www.bursamalaysia.com/market/listed-companies/company-announcements/5302377
2016-12-29 23:23
Management team is too young. They should learn how to reward their shareholders instead of get money from them.
2016-12-30 22:28
you are right, bro....the management never reward their shareholders after so many years since 2007....if i am one of the shareholders, surely will dump this EG immediately...useless.....no dividend at all...want to collect money from shareholders...really not competent at all.....the management must be dreaming!!!
2016-12-31 00:15
Don't be too pessimistic first.
Got to see what's their reasons behind the fund raising.
Tot I also hate this kind of work.
2016-12-31 00:37
right issue is meant for them to further expand their box build business :)
2016-12-31 10:34
dear sir , KOKO888 please add me to your study group : kenpangkk1@gmail.com
2017-01-03 13:51
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Op3rs
i hv always liked eg, until yesterday they announced to do give out rights again...
2016-12-28 08:54