Since FY16, the company has only managed to deliver very small profit to its shareholder. 9m18 result only manged to record a profit of RM1.8mil. Even if the company manged to deliver a higher than average profit of RM2.5mil for the full FY18, at the current share price, it would have already been value at almost 30x PE. To think it can deliver a higher profit in FY19 might be a bit of a wishful thinking on the part of some investors especially given the depressing property market at the moment.
If you are looking to diversify your portfolio outside of Sycal Ventures (due to its earnings uncertainties and relatively high valuation) 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.
market active many cash calls. to be cautious , i only prefer minimum risk which is in favor of me and able to shoulder the downside. i wait see . in the mean time, i prefer sycal with several self satisfaction reasaons, or shiok sendiri only. just a laugh
Thanks, and iIndeed, the fund to be raised will be mainly used in the housing and condo projects which look good to me. I know of this ICPS thing just now and the share price now is about 3-5 sens higher than last week when the price was less than 20sen, so I lose out a bit, but this extra 3-5 sens when spread over the 15 ICPS is just about 0.3 sen/ICPS. With egm on 6 Aug means the ex-date will be soon. Conclusion: I will definitely buy too.
Sweng88 and all, Below is copied from Bursa Announcement. Pls check there for more details.
The Proposed Rights Issue involves the issuance of up to 6,244,866,420 ICPS on the basis of 15 ICPS for 1 Share.
Based on the Conversion Mode, the ICPS can be converted into new Shares at the Conversion Price in the following manner: (a) by surrendering for cancellation twenty (20) ICPS for conversion into one (1) new Share (“Conversion Ratio”) (“Conversion Mode 1”); or
(b) by surrendering for cancellation one (1) ICPS together with a cash payment of RM0.19 for one (1) new Share (“Conversion Mode 2”).
ICPS called off, see announcement 30 march. It says the Perak project is making" net development proceeds of 24mil"....looks like it can do without the ICPS, that's why called off! Can expect share price up sooner or later?
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....
Jolin Lai Chi Pet
Posted by Jolin Lai Chi Pet > 2018-08-17 12:02 | Report Abuse
buy it while cheap................ later above 30 cents