On 15 October, AYS share price was 88 sen when the company announced share placement of 38 million shares at 76 sen each to big investor who knew the company operation and its profit growth potential. No investor would buy 38 million AYS shares unless he knows the company’s business and its management.
How is the share placement price fixed?
According to Security Commission rule, the placement price should not be less than the average price in the last 5 trading days with a discount of not more than 5%.
Its 2nd quarter ending Sept EPS was 6.51 sen and its 1st quarter ending June EPS was 8.5 sen, totaling 15 sen for 1st half year. All these profits were achieved during the Covid 19 pandemic MCO lockdown. Currently there is no more MCO lockdown and AYS should be able to make better profit in its 2nd half year than its 1st half year.
Assuming its 2nd half year performance is the same as its 1st half year, its annual profit EPS will be 30 sen per share.
Based on PE 3, AYS should be 90 sen.
Based on PE 4, AYS should be Rm 1.20.
Based on PE 5, AYS should be Rm 1.50.
Investors must bear in mind that AYS’ share placement price was 76 sen.
Created by Koon Yew Yin | Sep 27, 2022
Created by Koon Yew Yin | Sep 26, 2022
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Created by Koon Yew Yin | Sep 15, 2022