I think last time when it fell to 30 sens it was because of the MACC investigation. Now after the company was cleared of any wrongdoings, i think 50 sens is the lowest that it can go. The 3Q result should easily beats lasts year's result unless there are new delays in the development of the City of Dream. i am targeting a PATAMI of around RM12m PAT for both 3Q and 4Q. This brings the total FY 18 PAT of around RM48milThat which values the the company at 3.4x PE.
Whats your PATAMI target for FY18? Maybe i am a bit bullish but i am projecting the 3Q and 4Q only based on 1Q and 2Q results. And also based on the management guidance.
I dont know abt the investigation... just that looks like everybody is avoiding this industry... 52-54 sen should be the resistant level... but if it drop below, then it is 35 sen d... perhaps they need to declare more dividend to reward investors... share buy back also not able to raise confidence level so far...
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3Q and 4Q18 results should beat last year's. The PATAMI should continue at the above RM10mil level till at least the completion of the City of Dream (COD) project phase 1.
Then the company financials would be dependent on the Phase 2. Basically the profit is sustainable as long as the planned 10-15 years project development of the City of Dream continues. This is dependent on the completion of the reclaim Gurney Drive land which itself is dependent on the Penang Transportation Plan (PTP).
So basically if you believes that the PTP will progress then there would be no issue with the sustainability of EWEIN financial after 2024.
For 2020 to 2024 the financials of the company would be driven by COD 2 from the first 5.5 acre Gurney Drive reclaim land to be delivered by Zenith Consortium by end 2019 (which coincide with the completion of COD1).
I am bullish of this company mainly because i believe the PAT is sustainable. Assuming an average PAT of RM40mil per year from 2018, the current market cap of RM172mil is only 4.3x PE. This year alone i think PAT would actually be around the RM50mil range.
The trend is very similar to that in 2015 bull of this counter. In 2015, it dropped from 1.09 to 0.60 to slightly below sma 200, more than 40%. Now it dropped from 0.885 to lowest of 0.505. Also slightly more than 40% and slightly below sma 200. In 2015, we saw the rebound of more than 150%, from 0.60 to 1.56. What's the highest can we expect this time? 100% to 1.01 or 150% to 1.26. Let's see.
Can we achieve that of 2015? Then we see what's the catalyst of the rise. First 2 q of 2015, earnings less than 1m. 3rd q suddenly shot up to 8m. They play on sudden rise of the results. The price went on to peak of 1.26 before the worse qoq 4th q of 4m was announced. Now we see first 2q of more than 10m each. First 2 q already more than the whole year of 2015. If the coming 3rd q can achieve 7m plus PH counter effect, I don't see why it can't reach 1.00 and above.
Last Q 11m, now only u expect 7m.... mah drop till 35 sen???? Steady a bit... expect 15m result announced..... any amt below 15m is below estimate d...
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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....
CashRich
168 posts
Posted by CashRich > 2018-11-06 21:55 | Report Abuse
subject to how investor evaluate the value of the company :)