when it was 0.05 we said is so cheap , now is 0.03 we said again so cheap . watch out once our friend has collected enough it wouldnt be so cheap again
Putting aside the issues that they are facing with the MACC with regards to SSM’s Digital Core Registry contract, this is a company that have been continuously delivering losses to its shareholders since FY16. Core net loss to shareholders (excluding all one-off losses like impairments etc) from FY16 to FY18 are: -RM11.9mil, -RM6.7mil and -RM13.8mil respectively. Thinking that they can suddenly deliver substantial enough profit to its shareholder in FY19 or in FY20 might be a bit of a wishful thinking on the part of some investors.
The company posted a 1H19 core net losses (after excluding all the one-off items) of around -RM10mil which is more than double to the net core losses of RM3.6mil in 1H18. Some investors were expecting FY20 to post better results given the recent launch of the MBRS system for SSM which was to run under the company until March 2023 (management did not give any indication of the type of profit this contract will bring. The contract is under Formis Network Services Sdn Bhd which is a 51% subsidiary of the group). However, this was put in doubt given the recent issues with the MACC. Since most of the company’s revenue are derived from government contracts, any negative findings by the MACC would most probably affect the company future outlook in securing more IT related contracts which itself will affect the company’s financials.
If you are looking to diversify your portfolio outside of Omesti (due to its earnings uncertainties), 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.
Hope Omesti w give good Ang pow before cny n not only give after cny. ....make Loyal shareholders happy for 2020 ...be kind to shareholders not stringy haha
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....
bleuerouge
3,221 posts
Posted by bleuerouge > 2018-03-23 14:23 | Report Abuse
omesti wb is so cheap now...0.03 !!