Yes, soon... In fact today already started to move up but there are a lot of sellers but the stock were snapped up by the buyers. Buy rate today is 80.24%
KUALA LUMPUR (June 8): Asdion Bhd said today its 49%-owned associate Renox Stainless Steel Co Ltd has obtained the right to distribute automotive clean-in-place (CIP) equipment for the food and beverage industry in Indo-China for three years.
In a filing with Bursa Malaysia, Asdion said Renox had yesterday entered into an agreement with Thai turnkey engineering solution firm Engisoul Co Ltd for the CIP equipment distributor right.
Under the deal, Renox will receive US$100,000 per unit for each unit sold.
"The contract is expected to contribute positively to the group's earnings and net assets per share for the financial year ending March 31, 2019," said Asdion.
Not sure what is so appealing about Asdion that there is still a lot of people willing to buy into the company shares. Those that are invested, can you provide the potential catalysts for the company to post better financial results in the future?
The company has never been able to deliver any full year profit to its shareholder for the past 10 years. Even at the peak of its revenue of RM19.8mil recorded during FY16, it still recorded a core profit loss of RM4.4mil (after deducting impairment and gain on disposal of ppe). The 6m19 result also did not provide any confidence to management’s ability to help turnaround the company. Eventhough the revenue almost triple to RM7.2mil from RM2.5mil, losses have actually widen by almost 30% to -RM1.4mil from -RM1.1mil.
In terms of balance sheet, investors should take note that the group has been very dependent on debt to fund its operations with free cash only at RM544k (the deposit of RM650k is pledged cash). Short term debt obligation is at RM1.4mil.
If you are looking to diversify your portfolio outside of Asdion (due to the perceive weaker earnings outlook), I would recommend you to look at MBMR.
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 5.5x PE (based on target FY18 PATAMI of RM145mil. 9m PATAMI is already RM106mil). PB is low at only 0.5x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17.
For FY19 growth will be driven by the still high demand of new Myvi and the launch of the new SUV in 1Q19 and also the new Alza in 2H19.
Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. Most analysts have a TP of above RM3 for the company with Hong Leong being the lowest at RM3.13 and Maybank the highest at RM4.18.
Asdion got awarded Malaysian concession. Not some Kazakhstan contract type. Malaysia export China, escape local bad economy. Investors bought private placement 25.5 cents. Long term prospect just watch.
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Posted by Kubistrader > 2018-05-28 19:56 | Report Abuse
Becouse qr.