Considering other cement company like Mcement pe is 30 to 40 This stock is crazy cheap cement company in bursa. Have been press down for too long by boss.
The current market PE for cement company is above 20. Es ceramics is now a Cement company. When market start to realise it is no longer a glove related company. It will be rerated. Give it a PE 15 x 4.7 sen profit( Past 4 qtr profit)=70sen If next 3 qtr above 10 m = PE 15 x 7.4 sen profit = RM1.10
When the boss bought evermix below PE 20.Market scorned at him. Now you see whether can buy any cement company below PE 15. Probably only Esceramics left.
Government is boosting property sector. HSR and infra project in pipeline. Property and infra sector rally, means building material in high demand. Esceram will earn more then.
Evermix purchase was announced when the stock is at 33 sen. Market dump thinking its a lousy purchase. Now proven wrong. Shld go back 33 sen and above in short term.
Base on past 4 qtrs profit at pe 15 for building material sector shld be at least 70 sen.
Revenue from cement business Rm78.6 Million. Profit BEFORE tax on the cement business Rm1.8 Million.
Hardly inspiring profit margins.
Seems most of the profit for the quarter came from the Glove Forming business: Revenue from glove business Rm11.7 Million Profit BEFORE tax from glove business Rm7.6 Million.
One first glance the profit from the glove business looks excellent, however the figures include a reversal of previous impairments.
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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....
Income
12,642 posts
Posted by Income > 2023-02-25 17:53 | Report Abuse
Still long way to go
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