Finally it come !!! More to come tomorrow… 50c will reach soon… construction theme will continues move till before budget plan ! Grab the chance before too late
2bil unbilled order book for 3 years is approximately 700mil revenue every year. CEO also confident at least 500mil revenue in 2022. That makes them 25-30mil net profit based on 5%-6% margin. Assuming next year borders open and construction speed up, they could bill in 700mil revenue or more, that's safe to record 30mil net profit.
In terms of revenue growth is >60% assuming this year only capture 300mil revenue vs next year 500mil revenue.
In terms of net profit growth is >400% assuming this year capture 7mil net profit vs next year 30mil net profit.
Let's apply P/E of 20x, it's at least 600mil market cap.
Why 20x P/E? Owner has cornered 70% (60% from Dr Lim and 10% Mr Ong), that left 30% public float. Owner would not sell likely. That means to say 14x of the P/E multiplier equation controlled by owners, 6x of the P/E multiplier is in public's hand. It's the same structure happened to GDB few months back when it rocketed from 0.40 to 1.00 prior to the bonus issue! The best part is, Nestcon's order book is double of GDB's 1.3bil at that point of time when GDB rallied.
Is Nestcon a buy here?
I'd think this is a screaming buy now given that the whole world is recovering from lockdown. Countries cannot afford to lockdown further and no way we can catch the virus.
Infrastructure spending is the only way to boost GDP growth when monetary policy no longer efficient in a low interest rate and high inflation environment.
I won't be surprised Nestcon can get more government projects bidding since they are involved in ECRL and Johor railway.
Even at 0.50, Nestcon is still cheap to continue chasing.
hahaha. Now it is moving. Have you bought any? Chasing high soon. Major shareholders not selling post lock-in period on the 29 Dec 2021. Good sign that this company will grow further with the recovery theme and undervalued property segment domestically. Dato Lim will be able to execute it according to plan by moving into mainboard by 2023. Order books growing and with Exsim's aggressive development, they will inject profit into Nestcon via more projects bidding.
Maybe the Nestcon will get the empire city mall project in view that Exsim acquired 20% stake in empire city mall.
New IPO: The onshore and offshore support services provider for the O&G industry, Steel Hawk Bhd aims to list on the Ace Market!
MQ Trader 2904 views | 2 d ago
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
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....
BilisMasin
963 posts
Posted by BilisMasin > 2021-07-19 23:55 | Report Abuse
Just in for btst
Enter 0 320
Lets see how much could be make this wednesday