MMSV for 9 mth YTD had already made EPS of 11.38 Sen and in Q3 its EPS was 3.24 Sen. On conservative let say Q4 EPS is 3.24 Sen. Thus the FY 7 estimated EPS is 14.62.
Due to the current poor market sentiment,I have used a conservative PE of 12 to 15 (its peers are trading at PE 17.5(Vis), 22.6 (Penta) 29.8(Vitrox) and 24.6 (Elsoft) to value the Co to give a valuation range of 175 to 219 .
At 158, it is trading at PE 10.8. The balance sheet is strong It has a net cash of RM30.7 mil cash or 20 Sen per shar.
Your may also be concern of the strengthening of Ringgit which could affect MMSV profit margin. From Q3 report about 35.% of its sales is export.
Most tech companies in manufacturing also have very high import cost components, so the forex issue is there, but should be manageable. MMSV had been doing very well the past several years not because of forex gains, but because of increased sales from global tech sector upcycle and this up cycle is still strong. Given only 35.8%of sales is export, so for MMSV, Forex should still be manageable. If you recall in Q1 16, RM appreciate from 4.30 on 2 Jan 16 to 3.89 in mid April 16 and at 30 Sept RM was 4.125. MMSV was profitable for the 9 mths YTD in 2016. Hope this allay your concern
I cannot advice you to cut or not as we all have different risk appetite.
In Q3, the Board of MMSV had given a VERY STRONG statement of its prospects moving forward. I copy below:
B3. Current year prospects Given the continuing growth of the smart devices and automotive industries, the Board is confident of leveraging on them. The Board foresees that the performance for the remaining quarter will therefore be good.
Thumbs up to Investor 9999 for your candid assessment of MMSV on its strong fundamental analysis. I do share the confidence with Investor 9999 on MMSV outlook and its growth trajectory, which will translate into strong earnings and higher share price soon.
paktua, u ah, why compete with me? I manage to eat 63 lots at 1.56. 13 lots, then 50 lots, then it shoot up to 1.58 I still go a few more lots to eat. My queue is first at 1.56
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Posted by luckyjb > 2017-12-04 14:36 | Report Abuse
blackwhite, today many counters drop...market sentiment no good...