Meridian, a good buy for permaju. Unrealised profit for the quoted investment ~rm7mil. Bought at 26sen now 33sen (100mil shares). Meridian is profitable :)
Syer macam mynews, mct , dll ambil masa untuk ROI, tak sanggup menunggu :)
@ Goldencoins mikecyc, nobody care about fundamental now, dont waste your time, join and goreng make money more important than proving your points right or wrong.
As long as you can take this opportunity to make more money you are the winner, nothing matter more than that. 12/11/2020 10:30 AM
PERMAJU INDUSTRY: (MYR0.19) Acquisition to expand into West Malaysian property market Maybank IB Retail Research
Permaju Industries acquired 100m ordinary shares of Meridian Bhd (MEDA MK, Not Rated), representing 16.97% of issued shares in Meridian, for MYR26m cash or MYR0.26/sh. The acquisition will be funded entirely via internally generated funds. Pursuant to the acquisition, Meridian is now an associate company of Permaju.
At MYR0.26/sh, Permaja is effectively valuing Meridian at a P/B of 1.2x. The acquisition would allow Permaju to expand its property ventures into the West Malaysian market. At present, Permaju’s property projects are mainly located in Sabah. The acquisition would allow both parties to leverage on respective resources, as Meridian is also involved in property development and construction.
That say, execution is key to success. Meridian has been in the red since FY14 while Permaja’s earnings track record has also been volatile. Meridian’s earnings were affected by the subdued property market while Permaju, which has been in the red since FY07, was weighed by high operating costs. Its property and automotive industries are exposed to weak consumer sentiment.
Permaju has been trying to diversify its earnings base in its bid to turn around. In Sep 2020, the group entered into a joint venture (JV) with VSolar Group (VSOL MK, Not Rated) to submit a tender to build and operate a Large Scale Solar 4 (LSS4) proposed 50MW plant in Seremban. It is also in talks with Anzo Holdings (ANZO MK, Not Rated) to collaborate in the manufacturing of gloves.
But until any deal materializes, its outlook will remain subdued. Permaju recorded a loss after tax of MYR6.6m in FY6/20, with its automotive, timber, and property development divisions all in the red. This does not help when the government implements partial or full lockdown to combat the Covid-19 pandemic, which in turn, would hurt the demand for automotive as well as properties.
Valuation wise, P/B methodology is preferred here due to Permaju’s weak earnings track record. At current price, the stock is trading at a trailing P/B of 0.9x, above its 3-year historical average P/B of 0.7x. The only silver lining is that, its net gearing stood at 0.01x at end-Jun 2020. Investors with lower risk appetite should stay on the sidelines for now.
permaju PA 4sen X 5 units = 20sen jika converted into ordinary share. advantage Ada Banyak, pakai 1 unit PA tambah 20sen= 1ordinary share. jadi Beli pa permaju lebih Banyak kelebihan. 10tahun untuk pa permaju
contohnya, Beli 5 permaju PA= 20sen=1 ordinary share, tapi boleh pakai/tambah Wang untuk jadikan 5 permaju pa = 5 ordinary share , 4x4x5sen= 80sen ditambahkan untuk conversion
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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....
Victor Yong
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Posted by Victor Yong > 2020-11-11 13:13 | Report Abuse
Meridian, a good buy for permaju. Unrealised profit for the quoted investment ~rm7mil. Bought at 26sen now 33sen (100mil shares). Meridian is profitable :)
MERIDIAN Quarter Report History
FY No. Rev PBT PAT EPS YoY
QoQ
Jun20 - 6,952 4,248 4,248 0.72 1218%
63%
Jun20 - 611 11,433 11,470 1.95