Is it due to market current sentiment that vehicle sales will remain in doldrum for years to come, in effect wipe out the rm100m net cash from operation annually parameter. While issuer think otherwise. So, buy n hold?
I am from the auto industy and APM is the backbone of the Malaysia vehicle manufacturing industry and also one of the key OEM in Asean. For me this is the company if you are looking to invest long term in the industry not DRB nor Pecca or UMW. How far will APM go further down, I don't know but contrarian that want to invest in car industry. This is it.
Shaun you could be right and my interpretation wrong. I thought about that too but I'm thinking most analyst use the inverted version of the formula. Kevin lim did state gearing and net gearing ratio of not more than 0.3 or 0.1 times which I didn't included in here. And also the fact that APM ability to only serve half of the interest expense seems a bit out of common logic for me given the rating RAM assigned
The management have a proven track record. It's a good move for them in the long run. Of course, their profit might be affected by need to sevice the interest n also start up cost for new business for next 1 to 3 years. in business it is either you expand or wither away.
well ooihk899, it all depends how deeply the investor understand the business :D Perhaps you know APM well? Are you in the auto industry as well? In the region APM is like Continental in the German Auto Industry or Delphi in US.
I'm not in this line but this stock is in my watch list. When to buy it, I don't yet cause the stock is in down trend, as investor, everyone like to buy cheap including myself. I always like a company when they expand their business cause there will be growth. Furthermore, they expand in the industry they r familiar with. Not like some other counter, from furniture expand into property, that's too risky. Thanks a lot for your info. abangadik.
hahah no problem. As value investor we are always lonely most of the time, and it is hard to get a chance to buy a company in a industry you know best. I would say once or twice in a person's lifetime. Only worry I have in Bursa is plenty of time, good undervalue company get taken private quickly. I hope this is not the case with APM.
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