Tomei Consolidated Bhd is an integrated jewellery manufacturer and retailer of gold and jewellery. The company operates its business through two segments: Manufacturing and Wholesales; and Retail segment. The company operates approximately 60 retail outlets under five different brands - Tomei, My Diamond, Gold heart, Le Lumiere and De Beers. Its retail segment contributes the vast majority of total revenue. Tomei’s products are also exported to countries like Singapore, Indonesia, and in the European markets.
On 18 March when Mr Ooi Teik Bee recommended it, it shot up 30% to limit up at Rm 1.49 as shown on the price chart below. Yesterday it closed at Rm 1.25.
Quarter ending March its EPS was 9.93 sen and in its previous quarter its EPS was 8.42 sen. Its profit for the next quarter ending June should be much better because many Malay husbands would have bought jewelleries during the Hari Raya festive seasons.
Even if I assume that it has no profit growth, its annual EPS is 4 X 9.93 sen = 39.72 sen.
PE is Rm 1.25 divided by 39.72 = 3.1
Our KLCI has been depressed due to our political uncertainty, the rising number of Covid 19 cases and the potential lockdown for the whole country. If investors are not so fearful, Tomei share price should go up higher and higher. Even if you based on PE 6, Tomei should sell at Rm 2.50.
Tomei price chart below
I am obliged to inform you that Tomei is my largest investment holding. I wrote this article for your information only and I am not asking you to buy to push up the share price to make me richer.
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