Another note, many people say that the sales volume is boosted by the sales tax exemption. If one is to study the quantum of discount before and after the exemption, it is on average 3% savings of 2-3k only. I don't think such a minor discount can drive such strong sales. Therefore, I think it is credible that avoidance of public transport is also responsible in driving the strong sales, playing straight into the private transport theme. Therefore, should the sales tax exemption be removed next year, I think sales should still be resilient at around 20k unit per month.
Hi Choivo, what do you think when electronic vehicle become common in the future and selling at affordable price? Is perodua R&D working towards electronic vehicle? Oil will deplete one day and electronic vehicle is the effort human is taking towards green and renewable energy.
MBMR 0176 Plus point: - Reducing debt level since FY17. - Low P/B in FY20 of 0.56. However, average P/B since FY15 is 0.57. - DCF (discounted at 15%, growth rate of 8%) based on past 3 years average is RM 3.24. - Positive liquidation price of RM 0.51.
Negative point: - Slim net profit margin. 5 years median of around 5% - Low 5 years average core ROE of 4.55% - Annualised P/E in FY20 is 22.1. Average P/E since FY15 is 8.4. Despite the current price has drop significantly in FY20, it is still relatively higher than the price pre-FY19 even though its FY20 annualised net profit is much lower than pre-FY19 net profit. - Negative expected return: Downside RM 0.51, upside RM 3.24. Current price RM 2.86. (-2.35 x 50% = -1.175) + (+0.38 x 50% = +0.19) = -0.985 - Expected return vs current price: -34%
Conclusion: - Unattractive from long-term valuation perspective. - Require sentiment and catalyst i.e. very strong boost in QR earnings to invigorate market interest.
Remember With Rm 126m to Rm 131m net cash in Netx with the RI completed ,u can find big opportunity mah...!!
In addition there is a bigger skin in the game, where management confidently buyout netx & had put in rm 36m of its own hard own money to be the new substantial shareholders loh...!!
Everything is reset for Netx, it is the beginning of a New Era & a new prosperous technology NETX Mah....!!
My EP is 2.85, I will come back and have a look at it again after 2 more QR's
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Posted by wkc5657 > 2020-11-05 13:43 | Report Abuse
MBMR or POS better?