1Q19 result of negative RM2.5mil marks the 4th consecutive quarter of losses for SHH. Given the challenging market outlook of the furniture industry (oversupply of panel boards and lower demand from export market), couple with the persistently higher raw material and labour costs, investors will need to be prepared for SHH to continue posting quarterly losses in the near future.
If you are looking to diversify your portfolio outside of SHH Resources (due to its weak earnings outlook), I would recommend you to look at MBMR.
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.9x PE (based on target FY18 profit of RM145mil. 9m profit is already RM106mil). PB is low at only 0.7x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17.
FY19 growth will be driven by the still high demand of the new Myvi and the newly launched SUV Aruz and also the newly revamp Alza in 2H19. The recent announcement of closure and potential disposal of the loss-making alloy wheel manufacturing business alone is expected to boost the company’s profit by an additional RM20mil. I am projecting a profit to shareholder of RM170 mil for FY19 which at the current price values MBMR at only 5.9x PE.
Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. There are 8 analysts in total covering the stock with most of them having a TP of above RM3 (all have a buy rating). The average TP for the 8 analysts is around RM3.50.
======================================+==== As predicted, at 7.45am, 22 Oct 2020, It will reach RM 1.33 Now closing for 28. October 2020, RM 1.31(+RM0.06), just 4 trading days, it has reached RM 1.31, Just hold tightly and wait patiently for RM 2.00
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....
Posted by chrisyap > 2017-03-10 20:43 | Report Abuse
please wake up !! hehe