Previously, I think some investors were getting a bit bullish on the company especially when it managed to post a full year profit of RM3.5mil to its shareholders in FY17. Prior to that, the company has consistently posted losses to its shareholders since FY12.
However, it seems that the company had failed to maintain the positive momentum from FY17 going into FY18. The company had failed to deliver the expected profit to shareholder in the 9m18 and was only able to record a loss of RM1.1mil to the shareholders. 4Q18 would most probably post losses as well given that historically, 4Q normally deliver the worst quarter for the company. I don’t think that FY19 would be any different from previous the years’ performance.
If you are looking to diversify your portfolio outside of Focus Dynamics (due to its weak 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 6.9x PE (based on target FY18 profit of RM145mil. 9m profit is already RM106mil). PB is low at only 0.7x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17.
FY19 growth will be driven by the still high demand of the new Myvi and the newly launched SUV Aruz and also the newly revamp Alza in 2H19. The recent announcement of closure and potential disposal of the loss-making alloy wheel manufacturing business alone is expected to boost the company’s profit by an additional RM20mil. I am projecting a profit to shareholder of RM170 mil for FY19 which at the current price values MBMR at only 5.9x PE.
Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. There are 8 analysts in total covering the stock with most of them having a TP of above RM3 (all have a buy rating). The average TP for the 8 analysts is around RM3.50.
Why I look here look there Orion very similar to 1 stock king I in 2014:
1. No of share: both also about 600m 2. Start to goreng from 0.105 3. Both start after announcement of government link project. Both fintech. "I" doing GST collection software for government. 4. Cumulative 4 q earning after start goreng was 30m for "I". Cimb estimated Orion can come to highest 29m for 2019. 5. Both also start from weak results. "I" only 421k. Orion 1m. 6. The same analyst, Cimb analyst covered both
One famous anei behind the rise of "I". I believe he is also behind Orion...Guess who...
B3. COMMENTARY ON PROSPECTS The Group continues to concentrate its management resources towards its F&B segment and Property Investment segment, which we believe will provide positive medium term growth. On this note, management will:- (i) continue its diversification initiative to develop a mixed commercial development which will feature retail/ F&B lots, event hall, a Chinese restaurant, a seafood restaurant, a karaoke centre and car parks in a 5-storey building with a basement level to be erected on a piece of land next to TREC KL and the Tun Razak Exchange; and (ii) leverage on its existing F&B outlets, namely “Chaze”, “LAVO” “Maze”, “Liberte” and Bounce to further expand its F&B business including amongst others, opening of additional outlets or launching new F&B brands. Besides these ventures, the Board is currently re-examining the Engineering Service Segment as its contribution has dwindled over the past few years. Nevertheless, this segment will be maintained in the short term pending management’s review of the segment’s market conditions. The Board believes that the abovementioned initiatives in the F&B and property investment management should place the Group in a better position to further improve its financial performance in the near future. https://cdn1.i3investor.com/my/files/st88k/0116_FOCUS/qr/2019-03-31/0116_FOCUS_QR_2019-03-31_Focus-Quarterly%20Report%201st%20Quarter.File%202_1218693974.pdf
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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....
ayam
115 posts
Posted by ayam > 2018-05-28 11:57 | Report Abuse
Qr with +ve results out shortly rite?