Eps recovering, director declare another 20 sens dividend. Whole year dividend is 30 sens. 7.1% yield based on price 4.14. Is perstim making a coming back?
INITIATE STRONG BUY at fair price of 6.50. This translate to a div yield of 4.6% at 30 cents. Strong margin recovery (from 1.x% to 5.5%), div is safe. FY19 dividend is expected at min 30 cents.
Perstima has successfully passed additional costs to its customers in Malaysia judging from the latest QR. Local market will be profitable in the next few quarters as certain protection on imported tinplates is remained to local manufacturer. But it's not easy in Vietnam market due to free competition.
Perstima is a typical cash cow in this oligopoly business.The company would distribute most profits to shareholders due to lacking expansion opportunity. It’s staging a recovery’s mode now.
Large cash reserves to brace the storm. The group has consistently maintained a net cash position since FY14 and recently recorded 1Q18 net cash of RM42.7m.
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....
Lioncity
293 posts
Posted by Lioncity > 2018-06-01 11:22 | Report Abuse
Eps recovering, director declare another 20 sens dividend. Whole year dividend is 30 sens. 7.1% yield based on price 4.14. Is perstim making a coming back?