A foreign broker has finally issued a report recommending Sunright with a fair value target of 48c, mainly due to its holding in KESM. Looks like the analyst copied the idea from somewhere kikiki
SINGAPORE (Oct 28): NRA Capital has assigned a preliminary “overweight” rating to Sunright, with a fair value estimate of 48 cents. This represents a 41% upside based on its share price of 34 cents as at 3.41pm on Friday.
In Malaysia, Sunright’s semiconductor burn-in, testing and electronic manufacturing (BIT&EM) services are provided through its 48%-owned subsidiary, KESM Industries, which is listed on Bursa.
“Sunright’s shares in KESM and net cash have a value of 75.3 cents per share. In contrast, Sunright currently trades at 33 cents, less than the value its shares in KESM,” says NRA analyst Liu Jinshu in a report on Thursday.
Liu adds that Sunright’s share price is depressed by unprofitable entities, but profitability may improve on absence of lumpy items.
“The group suffered a $1.2 million write-down of inventories and a $0.8 million exchange loss in FY16 that were absent from KESM,” says Liu. “If these costs were to be saved in FY17, Sunright’s profitability may potentially be higher.”
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paperplane2016
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Posted by paperplane2016 > 2016-10-26 11:09 | Report Abuse
so quiet this few days