You are only looking at the figures for superb years. Prior to Covid, Esceramic PAT was so erratic that there were years it cant even generate 1 mil PAT. Check out 2018 and 2019 PAT. Post Covid 19, Esceramic PAT would mostly ranging around 10 mil. With this 5.5 mil, it would ramp up the PAT to around 15 mil.
The diversification is a bad investment. ESCERAMIC is a company with 160Million Market Cap generating rough 40Million PAT annually. Now they spend 50% of Market Cap to buy a company that only generating 5.5 Million PAT annually.
Initially I invested in this counter due to the facts that the company was making profit consistently in the past quarter, and has high potential in making more profit. However, out of sudden the Board and the major shh went and practise bad corporate governance by using most of the reserves and cash funds to acquire a related company owned by the major shh, with 65M cash, and the balance by shares. It means that most of the reserves will go into the pockets of the major SHH. Who will get the money? Not us in term of dividend but the major shh, and even then somebody is very happy with this and considered this is a good company , what is the logic? Insane.
treetopview I will lodge complaints to the authorities on this and dont simply let them exploit us so easily. Should my complaint fail, then I will never get involved in the Malaysian share market anymore.
Don't be too negative over the offer to buy Evermix. One of the evermix director sold his former business to ES n helped in listing of ES many years ago eventually over the years ES is doing well slowly he did contribute some efforts n do good for shareholders I hope this is a another good acquisition
Everyone said this counter is good, fundamental, but.... share price not stable at all....... no movement upwards. I only can say, u need to hold for 10 years then you said investing in long term is the way to go?
Andy, Im really not very good in figures n reading all the reports. But I do think both accountants Mr Wong n Mr Tan know how to calculate n do business If I invest in ES I have to trust both of them n let them work for me. Haha. Individual view la. This co definitely will not ended like King beast said PN 17. Thats lagi illogical. I think u like to talk facts n same to me
For a company with 3 to 5 years of experience, 10% to 20% can really be a good cagr for sales. On the other hand, 8% to 12% can be considered as a good cagr for sales of a company with more than 10 years of experience into same business.
Kingbeast, Without prejudice, in my opinion this might be due to poor corporate governance being practiced and investors lost confident in this counter. A very good example is that when huge profit is being made, the Management will try to take away the profit out of the company for the benefit of certain intended parties, and those investors who invested in them based on the outlook of the performance of the company will be victimized and suffer losses in the end, end up having no dividend received, pricing keep going down etc.
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....