lol? oh not on me, i have been holding this share since its 60 cts days i hope it will move up to its fair value soon, i wander why there is no indication of final div. in the 4Q report.
Buy & hold this counter as TP is $1.30+......now read this please..
EPMB's 4Q numbers were hit by higher raw material prices andinterest expenses although these were offset by a tax deferred credit. The higher costs led to a sharp drop in margins, which shrank 3ppts to 3.34%. We remain positiveon EPMB as we expect the company's earnings to be propelled by higher revenue from Proton and Perodua. Assuch, we maintain our earnings projections, with our BUY call retained. Our FVof RM1.38 is premised on a cheap 5x FY12 PE.
Hit by higherfinancing costs. EPMB recorded a poor set of results operationally in 4Q asits financing costs soared 42% q-o-q and 107% y-o-y amid higher raw materialprices, despite chalking up stronger sales during the quarter. Nonetheless, its weaker bottomline was offset by a substantialdeferred tax credit, which cushioned the overall impact. Stripping off unrealized forex losses whichwe consider as exceptional items, EPMB reported a FY11 core net profit ofRM39.4m (y-o-y: +53%, 4Q: q-o-q: -4%) on the back of RM577m revenue (y-o-y:-2%, q-o-q: +19%), which was in line with our estimate but slightly aboveconsensus.
4Q margins pinched.4Q margins shrank as raw materialprices shot up, causing the company'sEBIT margins to halve to 3.34% from 7.3% in the previous quarter. We also suspectthat this could also be due to higher depreciation costs.
Prospects remainbright on more contracts. We remainpositive on EPMB as the company's earnings are to be boosted by higher revenue,spurred by the upcoming launch ofProton's new Persona replacement sometime in the next 2 months. We understand that EPMB is supplying the auto components for this model. Meanwhile, Perodua is also expandingaggressively into the export market, which bodes well for EPMB. The carmaker isalso said to be looking to expand to the Middle East market.
Maintain BUY. Wemaintain our earnings projection, with our BUY call retained. Our FV of RM1.38is premised on a cheap 5x FY12 PE.
So let us hold until it goes high....think of the good company profits which runs up to 24 cents per share. People may not notice it now but once notice, it will shoot.
Bro Chong, I have realised one thing.....you add excitement into investors life with your super-analyst / identifying value stocks in our investment. Cheers....
So, brother tand3, you follow my cue to buy when it was 88 cents? Good for you as you will be one of the few laughing the way to the bank, hee, hee, hee. So stay with it & we shall see more to come....btw, please don't go for chicken feed, ha, ha, ha.
bro Chong, EPMB still going strong. But I will like to intro you to look at SUPERMAX. Anything lower than 1.90 can buy. I bought the last round at 1.89.....sold at 2.03. If it drop.....can consider.....
Brother tand3, I already bought Supermax at around $1.94 & sold already at $2.06. Price war among latex gloves manufacturers & I expect it to go further down. Price war as because of over supply.....you must have read it in the papers.
I also want to thank you Chong, you made it active, you made hot, this is the fourth time above rm 1.00. I couldn't help but sold some. But i still think there's something good to be announced for the share holders later. Agree ?
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Triple Ace
9 posts
Posted by Triple Ace > 2011-08-27 00:37 | Report Abuse
Will EPMB always decrease recently,even unaffected by weak car sales