chkhooju, Dangel, Surewind, Davidl : we are all birds of the same feather, and we all fly high today. We all have good insight and foresight in Chinwel. Bravo to those who believe in us.
Chinwel : Congrats to those who follow when i call on Mar 25, as today Chinwel spike up to RM1.89. Chin Well Holdings Bhd is planning to diversify its business to include one-stop warehousing services in Shah Alam. The automated warehouse is expected to cost RM12.0 mln and is scheduled to start operations this year Long-term investment merits, in-tandem with improving margins on better product mix (i.e.: downstream wire products) and higher sales volume. The share also offers a reasonable dividend yield of 4.5%-5.0%, which is paid bi-annually. Let's huat together!
RHB RESEARCH (20 Jewels 2019 Edition) Investment Case Fair value. Our estimated fair value range of MYR2.50-2.71 is based onFY19F P/E of 12-13x, near +2SD of Chin Well’s 7-year historical mean. We think our valuation is justifiable, as it is premised on a widening product portfolio, shifting global demand, consistent dividend payout, and sturdy financials under prudent management. That said, our valuation is still conservative, considering that the counter is at a 13-20% discount to Bursa Malaysia Industrial Production Index’s 5-year historical -2SD of 15x, given its relatively smaller market cap for now. Chin Well currently trades at a forward P/E of just 9x, while the 2-year earnings CAGR stands at 10%. Key risks include volatility in global wire rod and zinc ingot prices, global political uncertainties, and weaker demand.
Chinwell is really a very well managed company. Look at its cash flow, its stable revenue and profit margin, I really salute to them. Plus the high dividend policy, very clear and transparent, I would said fund manager like this type of company.
Prospect: "It is expected more orders could be secured by the Group from US market in the second half of the financial year with the completion of an expanded production plating line in Malaysia.
The production of the reinforcement bar in Vietnam is also expected to contribute to higher Group's revenue."
Not sure what the management is trying to do with the buy backs. Does not seem like they are very interested to buyback more like for show with 3k , 6k shares out of 400k volume.
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....
sooaria
804 posts
Posted by sooaria > 2019-04-25 15:43 | Report Abuse
chkhooju, Dangel, Surewind, Davidl : we are all birds of the same feather, and we all fly high today. We all have good insight and foresight in Chinwel. Bravo to those who believe in us.