(Initiate OUTPERFORM with TP of RM15.20) • Despite its share price more than doubling over the past year, we believe that this under-researched gem has further upside potential amid rising car production by global automakers and increased chip content in vehicles. • Among the initiatives taken to capitalize on these trends include i) Massive RM75m-80m/p.a. CAPEX plans over the next two years ii) Developing technologies to take on more complex/higher margin products iii) Increase operational efficiencies and greater economies of scale. • We are estimating FY17/FY18E net profits of RM38.8m/RM44.3m (+26.5%/14.1%) and are initiating coverage on KESM with an OUTPERFORM rating and a Target Price of RM15.20 based on 15x FY18E PER.
paperplane....kesm n sunright breaking new levels ,so whats yr opine on them.With China play in booming automotive new industries, precision electronics stocks cn gain further?
proton will be the famous brand in the near future. new technology bring in by geely, integrate more smart chip and processor, eventually Kesm more business. haha, right?
Tai KT....hope u are right. Proton/Geely will b the new big thing fr malaysia gov .They will make sure its success,at least in near future. KESM( malaysia),KESM(china) should b busy
Yes 122.8 mil shares.. 93m/ 122.8=76c.. It also has around sg $48m in cash.. More importantly revenue growth outlook is positive for rest of 2017. From the automotive sector.. Penta, aem, kesm, all doubled /trippled/ for aem it quadrupled.. The semiconductor sector is growing..
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....
paperplane2016
21,668 posts
Posted by paperplane2016 > 2017-05-11 12:51 | Report Abuse
all time high. keep up and up