Yeoh's strategy is to capture market share through price war and follow by price hike. Therefore, general can segment did not doing well in the past few years.
There are only 2 companies producing Aluminium Cans and Easy-Open-End namely Kian Joo and Crown Beverage Can in Malaysia. The top 2 players of metal-can goes to Kian Joo and Ablegroup. The business is relatively stable due to high barrier of entry in capital and volume wise. Kian Joo has expanded the aluminium can manufacturing facilities in Myanmar.
RM 4 is merely an appetizer. It would break 5 soon supported by recovery of earnings, PER below 5x, high NTA, low share volume & involving in consumer packaging business.
Gemfinder knows well. Give an opportunity for people to sell at cheap prices when the company was performing below par against its peers. MI are not so gullible. CanOne will lift up its peers together while share price are moving up. It is likely CanOne breaking PER 10x in the next few months. .
Canone will return to the valuation level in par or slightly below with its peers. It won't run too far away within a segment ie carton, stretch film, flexible packaging.
Slowandsteady. Canone's receivables is about 90 days which is much higher than Ablegloble. However, If you compare with Scientex's receivable, Canone's receivables is merely 12 days higher than the former.
Super undervalue . This new wave might see it break rm4 again n reach new high . Just need a F house to make analyses . Let’s hope some fund house will discover this gem
treasurehunt. It shows how competitive this industry is, sales and profit are there but can't receive money. This might be one of the reasons why pe valuation is low. No offense, just a discussion and I am still following this company.
Before taking over 100 % of Kian Joo which is much bigger than Canone own business in early 2019, Canone net asset bacing was $4.30. After taking over, its net asset backing rose to $9.73 now Plus it has shown big jump of profit and turnover in this half yr to $82m net profit or EPS of 44 ct for half yr. Not many companies in klse can achieve these !!! Thus , Canone is worth much.more than $4+ now !! Should be trading at $8 !!!
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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....
treasurehunt
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Posted by treasurehunt > 2021-09-02 11:04 | Report Abuse
This rally could be similar with the one in 2015.