HEXTAR GLOBAL BERHAD REGISTERS PROFIT AFTER TAX OF RM20.6 MILLION FOR THE 2ND QUARTER, DECLARES SECOND INTERIM DIVIDEND AND VENTURE INTO BIOGAS GREEN BUSINESS.
1) EPS for last 4 quarter Sep'19 - 1.07 Dec'19 - 0.95 Mar'20 - 1.17 Jun'20 - 1.38
Total EPS is 4.57. As Hextar is a growing company, it should carried an PE around 20. So 20 times 4.57 = 91.40sen. This is the fair price for Hextar, based on past performance.
If you look for forward PE, then it could be:- Sep'20 - 1.38 Dec'20 - 1.52 Mar'21 - 1.78 Jun'22 - 1.92
Total EPS will become 6.6, then times 20 PE, it become 20 x 6.6 = 132sen.
So, I would give a target price for Hextar around RM1.10 (within 3-6 months).
2) Cash flow is good, positive operating cash flow.
3) Boss is making a lot of money from Glove Sector, so boss have strong financial support.
4) Revenue is growing, even though during MCO period
5) In the QR, boss stated they are FULLY CONFIDENCE in the financial performance. In current market situation, beside Glove and Vacinne company, which company dare to give this kind of Statement.
6) Compare to its peer, SAMCHEM, LUXCHEM, HEXZA, ANCOM, Hextar share price performance is far behind them. Now is the time to catch up.
@Albukhary, many thanks for your detailed analysis, much appreciated. The price targets you have derived is fair and reasonable. The price will be a lot higher when the big boys decided to move this up as it is relatively less capital intensive to do i.e. it is still a cheapo penny stock with low share floats of approx. 24.5%.
Patience is the key to success in investing. Company is doing great. Not really a COVID related company but continued to deliver good results and high dividend despite unprecedented MCO and pandemic facing by the world. Value investor will turn to this counter. This is not a speculative penny stock for punters.
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....
will75
1,070 posts
Posted by will75 > 2020-08-24 13:27 | Report Abuse
Result our already. 154.9 % YoY.