We remain positive on Oceancash’s (OCP) business outlook after our recent meeting with management. We continue to like OCP, considering the i) favourable growth prospects in the hygiene’s nonwoven segment, ii) steady contribution of foreign felt sales from Thailand and Indonesia, as well as iii) strong management team with in-depth technical know-how. At 10x 2020E PER on the back of a projected EPS growth of 33% for 2020E, OCP’s valuation looks appealing. We reiterate our BUY call
Hygiene Segment’s Margins to Benefit From Cheaper Resin Cost, … Outlook for the hygiene segment still looks promising - 9M19 PBT rose by 10% yoy to RM2.5m, on higher revenue (+1% yoy) and improvement in PBT margins (+0.5ppt to 6.1%). We believe the cheaper resin cost (est. 80% of hygiene’s raw material costs) will likely see an uptick in hygiene’s margins in the coming quarters.
Today was only the first day it jumped. Even so, its market cap is still just RM180m on just 245m shares. The hygiene business should dominate proceedings. I think RM1.00 is around fair for a company that happens to be in the right sector, plus with a fantastic correlation to supplying Malaysia's best selling car.
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Daily8
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Posted by Daily8 > 2020-01-28 09:14 | Report Abuse
Mask is universal demand shortage!
Buy!!!!