So far I only saw annual report up to 2017..but annual audited report only up to 2015..is this 2 same or different?kinda miss interpretation..cos most of the time I only thought audited is the final which shd announce..
The financial statement in the 2017 annual report is already been audited by KPMG. If there was any adverse opinion from KPMG in their previous audited account, Bursa would have placed this company in PN17 status already. So, you can rest assured that there is low probability of hanky panky (at least until KPMG says otherwise) from the company’s audited accounts.
That being said, the fundamental of the company is not that great with the company having difficulties delivering meaningful profits to its shareholders for the past 5 years. In Fy18, they only managed to record a profit of RM850k. 1Q19 profit to shareholder was RM470k. Even if they managed to replicate the 1Q results to the other remaining 3 quarters and deliver a profit of RM2mil in FY19, at the current share price the company would still be valued at more than 30x PE which is high given its failure to deliver any constant profit growth in the past.
On the other hand, the company has a very strong balance sheet with net cash of RM6mil. NTA per share is at 55 sens which values the company at only 0.6x PB. However, it might be a while before investors can profit from the high NTA unless management suddenly decides to sell some assets and pay dividend to investors (which I doubt).
If you are looking to diversify your portfolio outside of Paos (due to its weak earnings and growth 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.
For FY19 growth will be driven by the still high demand of new Myvi and the newly launched SUV Aruz and also the newly revamp Alza in 2H19. I am projecting a profit to shareholder of RM160 mil for FY19 which at the current price values MBMR at only 6.2x 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. Most analysts have a TP of above RM3 for the company with Hong Leong being the lowest at RM3.13 and Maybank the highest at RM4.50.
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....
Octopus
549 posts
Posted by Octopus > 2017-04-25 15:33 | Report Abuse
yup, hupseng relative.. lol, surge like hupseng sure lemak d