Attracted by relatively high DY but after looking at its downwards profit trend and management remarks on challenges ahead, and close to 7 years low price (but cheap doesn't mean good unless for speculation), better skip for the time being. Good luck.
Another potential company that would benefit from the latest Myvi model which definitely looks promising. Take a look at what we think about APM Holdings in our recent post. https://www.facebook.com/omightycap/posts/905626392934362
Prolonged tightening of banks’ HP rules. Slowdown in the Malaysian economy. Global automotive supply chain disruption. Sudden jump in fuel prices and interest rate
While nobody can see clearly in front, the automotive industry remains depress as the share price is hovering around the level of 2010. It is 8 years ago. Good that this stock has been forgotten by the public. So that it provide opportunity for learnt people to collect....
You need to wait for 1-2 months to get your new My vi, or Honda or other makes due to absence of GST for a limited periods of time. Demands for APM products will be very good for at least 3 months and I expect next 2 quarters results will be good.
Amidst the trade war and the current market downtrend, APM is quite optimistic in going ahead with its five-year expansion plan which will yield positive results as a whole moving forward. This is despite reporting lower profits in its first quarter ending March 2019. {Source: The Star Bizweek 25 May 2019}
Given the trend of the share price, one has to be very worried about this Company being privatised at unfair but reasonable price. Market cap @RM2.58 equals to RM520 mil, less cash and cash equivalent close to RM300 mil+, back up by tones of properties at revalued book value of RM400+ mil. what's wrong with the investors' confidence in this counter?
Since Electric Vehicle (EV) is upcoming in China and elsewhere. Investors are worried. EV has lesser parts to replace compares to combustible engines that APM has strongly entrenched for decades. However, I had analysed and observed EV needs shock absorbers, vipers, etc
APM sales has been increasing for the past 10 years, just the profit margin is eroded. Based on the current price of 2.19, div yield is at a very attractive 5.5%. Analysis on its FCF & balance sheet shows it has no problem maintaining the current payout.
Trading at a very low P/B of 0.32 with trailing DY of 5.9% with strong FCF and healthy balance sheet. Yet price keep coming down. Privatization is looming...
the company dividend is good with solid fundamental and continuous expansion plan, the potential growth prospects still good. However when substantial shareholder selling aggressively, will be difficult to predict how much more the share price can drop before bottom out.
This is a fundamentally well-managed company, but just check whether the sector it's involved has recovered, but to be dirt sure of value buy by just divide the highest price done of 6 by 4= RM1.50, if another student selldown by substantial shareholders that likely it will trigger the said target.
epf disposing maybe due to apm profit margin has been shrinking all this year. it has shrunk from double digits all the way down to 3 to 4% only. on top of that, car sales has reach a plateau and they foresee next year car sales will drop. regional automotive demand will also slow down and therefoe apm product will see a decline in demand. the return of profit no longer meet epf criteria.
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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....
User Yap
83 posts
Posted by User Yap > 2017-06-16 01:29 | Report Abuse
i only know one of their customer named proton.