AT first glance, the planned diversification by SCH Group Bhd — an ACE Market-listed quarry machinery and equipment supplier — into the event equipment supply and rental business seems nothing out of the ordinary. However, the move will see several prominent names becoming shareholders, and potentially provide about 25% of future earnings.
To recap, SCH on Feb 2 agreed to buy 100% of TK Tent
hantam SCH liao...his client is Lafarge malaysia, annual report...news on google u can find it,lafarge up...this guy will up too loor....warrant bagi habis makan... peace!
SCH has a very lumpy and volatile quarterly results. Excluding all the non-recurring items, FY18 core net losses was at RM1mil. For 1Q19, the company only managed to record a mere profit of RM50k. Their main business in the quarry industry is not expected to rebound anytime soon given the still depressed outlook of the construction industry. Management is hoping that the 2 new businesses of equipment rental and fertilizers supply would help fill the profit gap left by the quarry business but given that both divisions are still new, investors might need to wait for a while longer before the 2 business can deliver any meaningful profit. In 1Q19 the combined result of the 2 segments was a loss of RM50k.
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.1x PE based on FY18 profit of RM166mil. PB is low at only 0.7x BV.
FY19 should deliver another profit growth year to the company. Profit growth will again be driven by the performance of Perodua (via MBMR 22.6% holdings in Perodua) from the still strong sales of new Myvi, sales of SUV Aruz and the introduction of the newly revamp Alza sometime in the 2H19. Aruz which commands a higher margin compared to other models, will help improve the total profit margin of Perodua (which will flow to MBMR’s bottom line as well).
MBMR is expected to achieve a profit of RM200mil in 2019. At the current share price, the company is being valued at only 5.0x which is a lot lower than the industry average of 15x PE. As an example, UMW (another company with exposure to Perodua) is currently trading at a PE multiple of almost 20x.
SCH is a very potential and volatile counter, it can give you a very good returns if traded with proper levels for such detailed info telegram me @revathi_4
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....
samyew1234
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Posted by samyew1234 > 2018-02-25 18:41 | Report Abuse
lan jiao counter la