PPHB (8273) – Public Packages Holding Bhd is yet another latest “tip” by Mr. Koon Yew Yin.

UPDATE 8. June 2021 9:20: price took off to 0.86 where is *some* resistance for now.

Technically it looks as a good entry – if there will be any good news – and selection by KYY is almost always a strong factor to push (temporarily) prices very fast, very high.

Reasoning behind selection, in basics, can be read directly from his post HERE.

Have a look at a few basic and my favorite ratios first:

Wow it looks really strong, but I need to remind you, these are just basic ratios and they mean exactly what they are – just numbers created from different numbers, but yes, its not everyday find, very promising!

How numbers which matter more to the most people?

The latest QR EPS is bit down compare to previous 2 QRs, which were excellent.

The last price is 0.825 sen on 7. June 2021

How to value the share? Mr. KYY himself likes to use  the latest QR x 4 x 10 to get his target price which is:

2.13 x 4 x 10 = 85 sen (P/E of 10, expecting future EPS to stay the same)

But Mr. KYY expecting profits will increase in this case, and probably/perhaps he counts more on previous 2 QRs. If we consider these numbers, his target price can be much higher (RM2 or more?). 

Hopefully he will come up with more articles with more details.

I personally prefer to use trailing EPS and P/E:

1.67 + 5.42 + 5.9 + 2.13 = 15.12 sen and target P/E for this kind of company give just 6

Target price: 91 sen

Consider high NAPS when pricing too.

My strategy also depends on if the company can actually increasing profit and other ratios going forward, here the last QR both revenue, net profit, ROE etc. is bit down.  Try to see why.

From the fast going thru of the last QR financial results, I don't see anything much alarming. 

Decreased profit explained: "The net profit during the quarter was dropped due to one-off fair value adjustment on investment property was recognized by joint venture company in last year." For more details continue reading:

For 4Q20. which post high EPS there is an increase in "share of results of joint ventures" of 6,666, which is a significant factor there for increase in profits - its simply explained there as Investment activities income. 

They have (a very) high level of cash too. Read the full report for more details. I personally wanted to understand why these QRs before had so high profits and it looks like the extra "push" in EPS was from "investing income" - if this and how will continue in the future I don't really know, I will need to have a closer look first and will update you if I manage to find out more.

Mr KYY expecting the business to do just well in coming QRs. Lets check his post and you decide ...

More posts on my BLOG.

Disclosure: Im not holding PPHB

Disclaimer: Im not a professional financial advisor or a financial analyst or an economist or an accounter.
This is not a trading recommendation / advise, just my personal view