Last year Protasco gave 8 sen dividend. If compare FD rate Protasco should worth above RM 2(DY 4% if maintain 8 sen). If 2016 dividend up to 10 sen TP RM 2.50(DY 4%) is not a dream. http://klse.i3investor.com/servlets/stk/annent/5070.jsp
Protasco Bhd has bagged a contract worth RM315.8 mln for the construction of a stretch in the Sungai Besi-Ulu Kelang Expressway (SUKE). Protasco’s subsidiary, HCM Engineering Sdn Bhd, will undertake the contract jointly with Hatimuda Sdn Bhd on a 40:60 basis. The work is expected to be completed within a 30-month period ending 28th February 2019.
Comments
The above mentioned project marks the first construction project secured by Protasco in 2016. Similar with the previous construction contracts secured, we expect the project to command an EBITDA margin of 11%-13%. Protasco’s outstanding construction orderbook now stands at approximately RM800.0 mln, which will underpin earnings visibility over the next two years.
With the construction contract coming in within our targeted orderbook replenishment of RM300.0 mln for 2016, we maintain our BUY recommendation on Protasco with an unchanged target price RM2.40. Our target price is derived from ascribing an unchanged target PER of 11.0x to its 2016 construction earnings, a target PER of 8.0x to its concession and engineering services’ earnings, while its education and trading earnings remain pegged at target PERs of 6.0x respectively due to their smaller scale businesses. Its property development division’s valuation remains unchanged at 0.6x of its BV over the next two years. http://klse.i3investor.com/servlets/ptres/36960.jsp
Protasco Bhd has proposed a bonus issue on the basis of one bonus share-for-every four existing shares. The issuance of up to 85.0 mln bonus shares will be subject to shareholders approval at an Extraordinary General Meeting held at a later date and is expected to be complete by 4Q2016.
Comments
The above mentioned corporate exercise will not have any impact on Protasco's earnings going forward. However, we view this positively as not only will it boost the stock's liquidity, but also a decent reward to the shareholders.
We reiterate our BUY recommendation on Protasco with a unchanged target price of RM2.10 (RM1.70 ex-bonus issue). Our target price is derived from ascribing an unchanged target PER of 11.0x to its 2016 construction earnings, a target PER of 8.0x to its concession and engineering services’ earnings, while its education and trading earnings remain pegged at a target PERs of 6.0x respectively due to their smaller scale businesses. Its property development division’s valuation remains unchanged at 0.6x of its BV over the next two years.
Price better goes up and up as many stuck at high price. Dont need 21 floor, 18 floor also can already. Chong ki pet and gang better ask him jump 18 floor. Same.
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....
Ben Gan
7 posts
Posted by Ben Gan > 2016-08-02 16:02 | Report Abuse
How true is that blog?