Posted by Icon8888 > 2014-05-07 14:57 | Report Abuse

Well done Noby. Hopefully more and more people will start writing useful articles to benefit everybody.

At least today I learn that Turbo Mech is a potential Pengerang play. Will keep it in my watch list

Looking forward to seeing more articles

Posted by sephiroth > 2014-05-07 15:30 | Report Abuse

noby, yr analysis on fcf,roic,roe are superb, all write up shd include these to provide a much better picture of the company

Posted by Barbarian > 2014-05-07 15:34 | Report Abuse

getting ready to buy more Turbo when Minho ripe

Posted by sephiroth > 2014-05-07 15:38 | Report Abuse

not exactly undervalue as PE = 14.2X

Posted by NOBY > 2014-05-07 15:46 | Report Abuse

sephiroth, dont forget the excess cash is RM0.39 per share. The adjusted P/E after taking away excess cash is 9.8x, still undervalued in my view based on its return of capitals.

Also, reason I use EV/EBIT instead of P/E when comparing the different companies is because of different debt structure.

Posted by sephiroth > 2014-05-07 15:47 | Report Abuse

noted noby, hexza/homeritz have good cash flow as well

Posted by sephiroth > 2014-05-07 15:49 | Report Abuse

noby, yr masterpiece are as good as kcchongnz, well done

Posted by Barbarian > 2014-05-07 15:49 | Report Abuse

Yes agree. Sui Sui

Posted by Icon8888 > 2014-05-07 15:52 | Report Abuse

Recently more and more forum members started to write. SJSoon recently wrote about Gadang. Now Noby wrote also.

A very encouraging trend

Posted by sense maker > 2014-05-07 15:55 | Report Abuse

Good margin, cash-rich, clean balance sheet (AR is a bit high though) and its share price has already gone up a lot in the past 3 months to reflect the value.

But revenue has been flat in the past 4 years. Reliance on distributorship may explain why it did not venture out too far beyond Sg successfully.

At a glance, it may be the mechanical equivalent of super-strong Pestech which sells cheaper electrical than dominant overseas players. But it is just a pump and compressor distributor.

5% growth every year for the next 10 years is too optimistic, unless one is convinced of its growth story and catalysts.

Not a buy for me at this price level.

Posted by Icon8888 > 2014-05-07 15:57 | Report Abuse

This is one stock that I had missed out, due to my ignorance

In stock market, knowledge is wealth

I came to know about this stock too late

Posted by NOBY > 2014-05-07 16:14 | Report Abuse

Glad that my write up has invited a lot of useful comments. Thanks everyone.

Posted by sense maker > 2014-05-07 16:54 | Report Abuse

Thanks for sharing, Noby.

Sepiroth asked me quite long ago about fair value of Homeritz. To me, it is not undervalued. That is why I did not comment on it. Furniture shares to hold for me are just Liihen and Latitude.

Posted by keithchan > 2014-05-08 00:00 | Report Abuse

Sense maker likes Liihen so much, because he is Chan Keng Chung, the major shareholder of Liihen. That is naturally but biased

Posted by cheongcy > 2014-08-07 23:49 | Report Abuse

Now only I realized there is such a good write up here. With current closing price of RM1.23, seems market is ignoring its excess cash of RM0.39 per share.

Posted by newklear > 2014-08-08 04:05 | Report Abuse

Hi Noby, I agree with your analysis but I also believe other companies have been unduly ignored in this study.

You have to understand that Energy will always to be the most precious commodity, as what you are talking now O&G. In Thermodynamics, it is clear that O&G is absolutely related to power generation...high grade energy 'Electricity' !!

Talking about underpriced counters related to turbo-machineries & power generation, one can easily identify one below RM0.20...

Rgds,
NK

Posted by NOBY > 2014-08-16 15:54 | Report Abuse

NK, name me a few counters. I am open to further analysis definetely

Posted by RolandPerez > 2015-10-13 12:36 | Report Abuse

Hmm. A good value stock. However, in my opinion, it is better to purchase a well known and strong base company. It will be less risk unlike this one. A turn of event could happen and I don't do gambling.


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