Fundamental wise, this stock is slightly expensive base on its NTA, cash flow and EPS. It should cost about RM0.40. But at RM0.495, the PE is 8-9, which is average. Positive operating cash flow, increased from 13mil to 17mil in 2014. Cash reserves stood at 15 mil, with total borrowings around 24mil. Meaning the gearing is about 0.42 (which is quite stable).
I went into HHgroup at 0.495. revenue increased significantly but the profit margin is lower. Risk is that it depend largely on its biomass product and export to China mainly. If there is no hiccup to this, basically its new plant in gua musang will generate additional 30% capacity and will record higher revenue. Also it plan to be listed in main board by end of this year, 1 year++ after it was listed in ACE market in 2014. Finger cross, 0.70 TP
Majority of the revenue is from China, exporting biomass. Only a section of revenue comes from its own mattress brand. which I think is making loss for matress section but for biomass, revenue grow >20% but net profit margin remains roughly the same
Yes, 2%. I think selldown not complete yet. Foreign selling due to RM dropping...and now, China devalue by 2%, causing more fear within...nonetheless, I pump in another batch at 0.395. I am going all out on this counter, if it sink, I sink too...
Replied to you Icon. In fact, I think we can have the chat here. Probably you can email me some studies you had done on this counter/ other counter and I can share with you too
Yes, you are right that the alternative to this biomass is competitive right now due to low oil price
I haven't decide to cut loss yet. I am waiting for its quarterly report. With the gua musang factory operating additional 35% of the existing capacity and planning to be listed in main board end of this year, hopefully can achieve its 100mil Revenue target this year. Otherwise, kaput...will wipe out all my profit and possibly negative my portfolio. ... Do or Die
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....
paperplane2
3,235 posts
Posted by paperplane2 > 2015-07-23 10:51 | Report Abuse
0.60 I sell all and pack my things. Cash is king nearer and nearer