Dataprep's subsidiary SOLSIS has a great business model and are starting to close deals rapidly. They are winning in the free market and saving clients a lot of money. Hong Leong Bank signed a 3 years outsourcing deal with them too. Bravo!
And now they won RHB bank's business for entire IT outsourcing. This shows the robustness of their IT setup in SOLSIS. Able to win banks means their IT security is superb and fulfill Bank Negara's stringent criteria. This reputation will fly far.
This is a company that has been making consistent losses since 2008. In the 9m19 period, the company recorded a total net loss of RM5.8mil to its shareholders. Expect FY19 result to still be negative bringing it to 12 consecutive years of losses. Some investors believe that FY20 will be different but I think they might be putting too much hope on Dataprep’s management. Most likely FY20 will end up as a loss year as well.
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.1x PE based on FY18 profit of RM166mil. PB is low at only 0.7x BV.
FY19 should deliver another profit growth year to the company. Profit growth will again be driven by the performance of Perodua (via MBMR 22.6% holdings in Perodua) from the still strong sales of new Myvi, sales of SUV Aruz and the introduction of the newly revamp Alza sometime in the 2H19. Aruz which commands a higher margin compared to other models, will help improve the total profit margin of Perodua (which will flow to MBMR’s bottom line as well).
MBMR is expected to achieve a profit of RM200mil in 2019. At the current share price, the company is being valued at only 5.0x which is a lot lower than the industry average of 15x PE. As an example, UMW (another company with exposure to Perodua) is currently trading at a PE multiple of almost 20x.
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 Yen
138 posts
Posted by Victor Yen > 2018-08-07 16:17 | Report Abuse
Slow...Anyone knows when is the qtr coming out ?