Investing with Prudence

On My Radar - 2

arif
Publish date: Sat, 01 Jul 2017, 11:14 AM
arif
0 7
Focused on Stock-picking fro Medium to long-term Holding

AWC 

This is indeed a very promising company with reputable clients in reputable markets. Earnings visibility is great with sizable order book that wil last a few years. At current price of RM1.10, the PE is 13.2 x based on the profits of FYE 30/6/16 and 9.2x if worked out based on trailing 4 quarters. I find this an irresitable bargain for a company in such growth mode.

The financial indcators are anything but healthy. Gross Profit for the first 3 quarters of FYE 30/6/17 is 29.5% and PBT is over 13% of Revenue. PBT growth for the last 3 quarters is 60%. Borrowing is negligible while Net Cash is at RM60 million or 22 sen per share.

 

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