This counter is waiting for some Guru or Youtuber to promote. This company has built a very very large factory and start operate on last year. As it is still at initial stage, so the new factory is only running at 20-30% capacity. Once everything is ready and order is on track, this new factory will be running at 90% capacity, and by that time profit very be very good.
For me, this counter is similar like SKBSHUTTER, it can be sideway at 30sen++ level for 1-2 years. But once its start generate profit, it will be covered by Guru / Youtuber / Research House, and by that time, the share price will be increase dramatically by 200-300%.
China company has invested RM48mil for 40% of the share, it mean the company is worth RM120mil (100%). Current market cap is only RM67mil. And company mentioned that once the China company became their shareholder, their revenue will be increase substantially, as China company will place substantial order with ABM Fujiya. Please take note that the RM48mil is for the share of one of its subsidiary only. Patient is the key to success. Expected it will take 3-6 month for the acquisition to complete, as it required EGM approval.
Based on the MOU signed on 2019 between ABM FUJIYA and JUJIANG ENERGY, the proposed investment value is approximately RM500 million is the proposed budget for the Parties to set up a new battery manufacturing plant which include, amongst others, the acquisition of land and construction of plants and machineries.
Currently, AMB has only incurred around RM150mil on this new factory, as now they only setup 3 production line, and the factory actually can accommodate more production line.
Therefore, we can expect that ABMFUJIYA revenue will at least grow up 200-300% within the new 2-3 years.
Assume each units of battery selling price is RM100, and assume current production capacity is only 30% of the 8mil. It will be equal to 2,400,000 x RM100 = RM240mil revenue.
Assume profit margin is 5%, then we can expected RM12mil net profit.
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....
NewKidsOnTheBlock
3 posts
Posted by NewKidsOnTheBlock > 2020-03-25 15:36 | Report Abuse
hold...it is a good counter...be patient...time will tell its true value...