Sushi King business is very good (super good, need to wait for seat). Chemical business also very good. (No more MCO, can run at 100% capacity) LifeScience business also very good. (No more MCO) Myammar fisheries business back to normal. (Political more stable compare to last quarter) Property is at strategic location. (waiting for revaluation) Property market value is much much higher than book value. NTA RM2.00 124mil share only. Market cap RM174mil.
Last time Chicken Rice Shop sold to Japanese buyer for RM200mil. Don't you think Sushi King will worth at least RM400mil. Why Texchem want to bought back the 28% from Yoshinoya?Maybe he already find a buyer, so he must buyback all the share, then only can dispose to new buyer at higher price.
Hextar bought a lot of chemical company at high price. If Hextar want to acquired Texchem Chemical business (Industry chemical + Life Science), I think minimum it will offer RM300mil.
So, TEXCHEM is worth RM300m + RM400m = RM700m.
RM700mil / 125mil unit of share = RM5.60 per share.
Give it a superb durian runtuh discount of 50%, still worth RM2.80 minimum.
U look at Ancom, it was below 50sen during Dec 2019. Then suddenly it climb to to RM3.50 within 2 years.
Since its an open secret that profit will be somewhere between 8 to 10 million for Q4, that gives a quarterly eps of around 9 sen. If you annualised that forward, that's yearly eps of 36 sen. A very conservative pe ratio of 10 gives it a fair value price of rm3.60. Industrial and food divisions will be the superstars for the company.
Powerplay, then you really newbie, bjfood price does not move a lot prior to the result, not even has volume Texchem already moved so much and break new high If good result also people will sell on news already
Last time, they paid 10sen dividend every year in 2015,2016,2017 and 2018. Then no more dividend in 2019,2020 and 2021 when it was loss making. Profit good should expect some dividend hopefully!
My only concern is that the receivables (145mil) and inventory (110mil) keep growing for the past few quarters. Hopefully, this is due to growing business turnover...
Reiterate buy with a valuation of RM2.25 to RM2.51 using PE 8 to 10 based on our FY 2022 estimated EPS of 28 Sen.
Fantastic result above expectation. Current share price at RM1.32, it is trading at PE6.43 based on FY 2021 EPS of 20.54.
We are PRUDENTLY estimating the FY 2022 EPS to be 28 Sen given all the Divisions are profitable. See the attached excel table on our logical basis. At PE 8 to 10, its valuation could range from RM2.25 to RM2.81. A better assessment would be after Q1 2022 result is announced by end April 2022 which we are expecting it to be in line with Q4 2021 performance.
We were convinced that Texchem had turned around since Q3 2020, Q4 2020 and Q1 2021 and derailed by the Covid 19 full MCO in May 2021. We had initiated a valuation of RM1.60 to RM2.00 post MCO in Oct 2021 as a recovery stock when it was less than RM1.00. The Q4 2021 result was out which is way above our estimation of EPS 10 Sen.
In Q4 2021, the Group achieved higher revenue of RM323.8 million (Q4 2020: RM270.3 million) and pre-tax profit of RM20.5 million (Q4 2020: pre-tax profit of RM15.4 million). The Q4 2021 profit after tax attributable to shareholders was RM16.533 mil with EPS of 13.71 Sen (Q4 2020: RM9.76 mil with EPS of 8.09 Sen)
For the FY 2021, the Group recorded revenue of RM1,087.3 million and pre-tax profit of RM30.7 million against FY 2020 revenue of RM1,017.7 million and pre-tax profit of RM1.4 million in YTD Q4 2020. The FY 2021 profit after tax attributable to shareholders was RM24.767 mil with EPS of 20.54 Sen (FY 2020: loss RM2.539 mil with LPS of 1.96 Sen)
wallstreetrookie, you must be non-malay. SushiKing is now very popular in Malay market, as more n more malay can accept japanese food d.
Last time I have the same opinion like you, especially for Chicken Rice Shop. I was also wondering why got people want to eat Chicken Rice Shop. Until I saw their revenue n earning, then only I understand why it can last so long in the market.
However, I am still not shorting this company because I am worried that one day Texchem could follow Ancom and then my portfolio would be destroyed. Better not take the risk
This is why you don't trust 90% of companies listed on Bursa Malaysia. I've spoken to more than 50 board of directors, C-class executives in Malaysia. And most of them are highly unqualified, incompetent, greedy leeches. Less than 10% of the companies listed on Bursa is investable, the rest are hot garbage
True, Texchem management really lost their trust a long time ago. No idea how they are going to recover. This company has solid fundamentals. They just need to stop being too aggressive with their expansion plans.
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Posted by samchong6891 > 2022-01-28 08:08 | Report Abuse
What big hint Powerplay666哥哥?