Since its listing in 2015, revenue has grown by an average of 5% per year however profit could not follow suit. In FY16 (Apr 15 to Mar 16) profit to shareholder was at RM12.7mil however the most recent 12 months trailing profit is only at RM7.3mil. At the current share price, the company is trading at a high of 20.8x PE which investors would normally expect a PAT growth of around 15% per year (after 5 years profit will double). Given the intense competition of the logistic industry at the moment, growing the profit of the company might proof to be a difficult thing to do in the near term. That being said the fall of oil price might help improve the margin a bit.
The company’s balance sheet on the other hands looks pretty healthy with net gearing of around 50%. The only issue it the cash balance which has depleted to only RM3.3mil from RM6.7mil early of the financial year. That being said it won’t be a big issue to the company as it still has the ability to take some debt to finance any shortfall in cash for its operation.
If you are looking to diversify your portfolio outside of Xin Hwa (due to earnings uncertainties in the short term), 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 6.0x PE (based on target FY18 PATAMI of RM145mil. 9m PATAMI is already RM106mil). PB is low at only 0.5x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17.
For FY19 growth will be driven by the still high demand of new Myvi and the newly launched SUV and also the new Alza in 2H19.
Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. Most analysts have a TP of above RM3 for the company with Hong Leong being the lowest at RM3.13 and Maybank the highest at RM4.50.
Posted by Sonnykwaeh at Aug 9, 2019 1:22 PM | Report Abuse we look at the malaysia market this two days consider stable. but logistic XIN HWA still under selling pressure . must be something not to good going to annouce , compare to the top top lousy counter Tashin . today also stable but Xin hwa still down , anyone know what happen to xin hwa matter. scare to go in later become 20cts or lower i think those who have can cosider cut lost , as my friend by some today mostly from BIMB 80% , TA and RHB . thats all this three securities keep selling .
Friday volume is lowest in 2 weeks. Actually selling pressured is slowing down tremendously. Friday selling due to retailer playing limit. And nobody want to keep shares during long weekend. See tomorrow if can sustain above 28 cents, wednesday might have technical rebound. If the volume for technical rebound is greater, can chip in to get at least 10%.
Xin hwa Posted by Sonnykwaeh at Aug 13, 2019 1:39 PM | Report Abuse everyone maybe over look XIN HWA , Not mistaken from 90cts down to 60cts and down to 40cts NOW TODAY IS 25cts , as i say this company is totally fine just some listing regulatiion not familiar . KPMG already reply to bursa . and Bursa in wrinting accept the explaination , ? why Share price keep going down operator still like to play contra sell high and buy back cheap . contra take the profit. So is eveyone awaiting xin hwa will drop below 20cts !!!!!! .ok we wait and see . BUT IF EVERYONE IS SMART ENOUGHT SHOULD KNOW NOW IS BUYUING TIME 25cts - 28 cts . If small Player no money to pick up can sell and buy back . SURE WIN . Like
operator today try to press xin HWA price below 24cts , we all should buy in and group up to block at 25cts - 255cts so( BIMB investment} the operator cant buy back at 24cts or below . Dirty playing KACANG PUTEH PUN MAU MAKAN WANG KITA
Sonnykwaeh aiyo minyak tak ada , lori nak Jalan pun tak boleh , xin hwa ,yinson , tiongnam, masa seelong sampai sekarang jadi peny stock , use to be our johor sultan (tuanku) good friends hai , SAD yeah 14/08/2019 11:19 AM
Xinhwa very good. Will bounce back to RM0.60 soon. Last deteriorated quarter result mainly due to the impairement loss and etc. They will write back this quarter. This coming quarter can report easily RM3Million Profit....Grab now....
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....
Myeye
1,373 posts
Posted by Myeye > 2018-06-05 15:53 | Report Abuse
+ 0.865 ~.~