PMB net profit margin is about 10% based on past few quarter results. RM 2.2b sales x 10% = RM 220m. Assuming PE 20 (Conserviative PE as Pmetal used to have PE of betwen 30-50 in the past) will give mkt cap of about RM 4.5 billion. Current mkt cap is about RM 2.4b.
PE 20 -30 should be very fair to PMB as it is in a special industry and barrier to entry is very high.
Future growth prospect
This year PMB completed phase 2 expansion making its output to 72k MT. The land area for the factory can cater for another 2 phases of expansion in near future. The mgt has indicated that negotations are underway with Sarawak Energy on power supply deal for phase 3-4 expansion. We shall hear some good news from them in near future.
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....