If provide aging of receivables and inventory info, believe investors may buy in, otherwise it is not much different from London biscuits. Anyway, trading opportunity arises amidst low price.
No go for LT. Need to sort out receivables and inventory. Promote higher standard of disclosure. Professional body and authority need to do their jobs to entice foreign funds with better disclosure.
No matter economy good or not , education is a sector of compulsory growth. Is like alcohol business also non stop growing business although increasing tax.
Not hope . Is the sasbadi strength in maths and science books. Previously all the maths and science contracts were awarded to.sasbadi. This time also sure get.
More than 60 cents will achieve. Based on calculation primary school standard 1-6 , secondary school form 1-6. All.the maths and science books change to english version , SASBADI.WILL HUAT until rocket high
Everybody please throw ur shares to syndicates. Syndicates are hunting to buy more. Education Minister want to change all the english maths and science book soon. Syndicates are hungry now.
Last time SAS used to get each contract a few millions.
Now only 650k for 2 contracts, and the contracts are for 3 years. Meaning that each year it will only contribute 217k. All the big subjects tender failed.
Do you know how small is 217k for a listed company?
Today I wish to talk about Sasbadi. I like to invest in the counters of non-cyclical in certain field like education , health care , water&power utilities and food.These kind are company on can achieve long term growth and demand.
Sasbadi is educational related company established more than 30 years in Malaysia. It strength is publishing english , sciences and mathematics related subject. Till to-date 7 Feb 2020 (1 month plus ) , It already awarded 3 contracts publishing sciences and maths subject books to government. And it was expected to be more and more coming in this years. Now , the news of our PM cum education minister want to replace school teaching langues of mathematics and sciences subject from Bahasa Melayu to Bahasa English. I am of the opinion that this proposal will carry out in this year as well because of 2 reasons : 1) TUNM already 94 years old , He cannot wait some more later because he realize he will kick the bucket anytime from now. This English Teaching Maths and Sciences is his wish since 1998 he was PM.
2) TUNM want to implement WAWASAN School in whole MALAYSIA. The only obstruction is Chinese and Tamil Langues teaching method supported by local non-Malay community. Thus , now the first step is want to reduce the usage of Chinese &Tamil langues are to implement ENGLISH on Maths and Sciences.After year 2020 all the maths and sciences teaching method adopted , only year 2021 changing all kind of school to VISION SCHOOL. VISION SCHOOL MEANING ALL THE COMPULSORY SUBJECTS ARE TEACHING IN ENGLISH AND MALAY. This is the biggest ambition of TUNM before he die. As I said , now he worried time running short in his life ,We will definitely using his power to implement both ambition properly in 2020 also.
Back to SASBADI , why the above 2 ambitions from TUNM are benefit to SASBADI only? This is because our vision to transformation to develop country highly depend of sciences and technology. Education of sciences and technology is the foot base of this metamorphosis.As we trace back all the record of the sciences stream contracts awarded to SASBADI. Now the maths and sciences english version book involved of primary standard 1-6 maths and sciences ( total 12 types of books) , Secondary form 1-3 maths and sciences (total 9 types of books) , Form 4-6 maths , additional maths , biology , chemistry , physic ( total 15 types book) , Vocational and Technic school form 4-5 ( estimation 25 types of book). Total replacing English to Malay Education books are estimated 61 types of formal schoold education book. Let said one type of book cost RM500k to publish and the conservative award winning rate was 60% . RM500000 x 36 = RM18mil ( with profit margin 30% for government publishing) x0.3 = NET ADDTIONAL INCOME THIS YEAR RM5.4mil . The above is calculation only solely for formal school publish textbook excluded the reference book selling in bookstores.
The conservative and roughly calculation of the year 2020 revenue shall be boost to RM 110 mil with net profit margin 15% = RM16.5mil or earning per share 3.96 cents. This is just a conservative projection of the company business.
With EPS 3.95 x PE ratio 20 ( based on the EPS of competitor Pelangi Publishing Group PE ratio 20 ) = 3.95 x 20 = RM0.79 Target Price.
Conclusion , Sasbadi now extremely undervalue GEMs with current price RM0.175 . Dam cheap now , harga durian runtuh. This ENGLISH TEACHING MATHS AND SCIENCES RESOLUTION SURE APPROVED IN CABINET NEXT WEEK BECAUSE IS TUNM PROPOSAL.
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....
thesteward
6,782 posts
Posted by thesteward > 2020-01-12 15:37 | Report Abuse
Soon rebound