KIMHIN have shown significant turnaround of it performances from it's last 2 QR for year ending 2016.

WIth recent news of it's stronger sales, performances are likely sustainable.

Why recommend BUY:-

1.Leveraging low Malaysia currency, company is largely expanding to Foreign market

Company is showing obvious sign of expanding as they have just newly acquired Outset Holdings in Australia and on top of that, management have stated that they are looking into even expanding to UK.

2.Newly acquired Outset Holdings in Australia division

The company only acquired this Outset Holdings Australia on September 2016, which means it only reflected 4 months earnings. However, it has already turnaround the Australia segment from a loss making in 2015 to profit of RM 3.8mil in 2016.

The company also stated that they are expecting this Outset to making a bigger contribution on yr 2017. 

3. Financial Perfomance

Company is performaning very well from the last 2 QR, mainly driven by their better performance in foreign market.

4. Generous Dividend payout

With stronger performances, we will expect company to payout dividend to reward shareholder.

KimHin have track record of rewarding shareholder as shown below during performing FY 2015.

KIMHIN have showed obvious sign of EXPANSION and their recent investment have even started contributing STRONG PROFIT to the company. 

TP for KIMHIN would based on a simple forecast as below:

3 QR with net profit of 13mil or EPS of 9.5 cent and 1 QR with net profit of 4mil or EPS of 3 cents (First QR)

= EPS (9.5 +9.5+9.5 +3) x PE 10 = RM 3.15.

With bright prospect, strong NTA of RM 3.67 and strong cash flow (net cash company), this counter have been OVERLY DISCOUNTED.

* If First Qr result able to make a surplrisingly result like FY2015, Share price of KimHin might trade near to its Book Value.

News are extracted from: http://www.thestar.com.my/business/business-news/2017/03/13/kim-hin-rides-on-stronger-sales/