. i have a good view on this MTAG, however i need to cash out from this counter after got some little profits, for other counters. you guys keep fighting, i shall be back...
Buy glove stocks lah if you want to make money, no point holding on to this lagging stock, if market crash, this stock will not be spared too, make quick profit better
At 53 Sen, it is a good entry point to invest in Mtag with an upside potential exceeding 60 Sen. At PE 12 to 15, its valuation with projected 5 Sen EPS would be from 60 Sen to 75 Sen. It is a growing CO per it’s business and expansion plan spelt out in the prospectus during its IPO in Sept 2019.
MTAG at 53 Sen is currently trading at PE 10.5 based on 4 Qtrs rolling EPS of 5.05 Sen. The Co had paid 2 interim dividends totaling 3 Sen, thus trading at an attractive dividend yield of 5.66%
Financial The Net Asset per share is 28 Sen with cash of RM 105.7 mil or 15.5 Sen per share. The Co has good cash flow with net cash generated from operation is RM24.7 mil per Q3 report.
Results for financial year-to-date 9 Mths 31 March 2020
The Co is operating with a high gross profit margin of 32.1% and PBT margin of 24.7%.
For the financial year-to-date, the Group recorded revenue of RM136.47 million with gross profit of RM43.834 mil and PBT of RM33.726 mil. The Group’s revenue was principally derived from the converting business segment, accounting for approximately 84.57% of the total revenue for the financial period-to-date. The Malaysian market remain the largest market contributing to the Group’s revenue accounting to approximately 96.19% of the total revenue for the current financial period-to-date. During the current financial period under review, the Group has recognised a one-off listing expenses amounting to RM1.87 million and incurred forfeited deposit of RM245.6K which are not recurring.
The Co reported a net profit of RM25.166 mil with EPS of 3.69 Sen. Adjusting for the non-recurring expenses above the core net profit would be RM27.281 with EPS of 4.0 Sen. Despite the MCQ in Q3 quarter affecting business operation, the Co reported a net profit of RM8.128 mil with EPS of 1.19 Sen.
Potential dividend in final quarter, validates high dividend yield. MTAG established a dividend payout policy of minimum 20% of PAT. As at 9MFY20, the Group declared 3.0 sen DPS, translating to 81% dividend payout and an attractive dividend yield of 5.3% at current level. We expect of potential dividend to be declared in upcoming quarter (final quarter ending June 2020), given its strong net cash of 15.5 sen per share as at 9MFY20
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....
yorkyork
2,775 posts
Posted by yorkyork > 2020-07-11 15:58 | Report Abuse
Value investing at the end the price will go back the value.