@trader808 where are you? I listened to uou and sold my wa at 16.5 for a small profit and followed your advice to switch to big 'M' and noel stuck there
With a robust order book and aplenty replenishment opportunities on the horizon, MNH is poised to achieve record-high earnings in FY23. We have revised our FY24 and FY25 forecasts upward by 32% and 66%, respectively. Our fair value for MNH now stands at RM0.59, up from the previous RM0.45, based on a 12x FY25f EPS of 4.9 sen. Given MNH's significant presence in the solar and data centre industries, the stock appears to be undervalued, especially with its forward P/E ratio of 8.8x.
From fundamental perspective, 50sen is already at the high side valuation. Anything above 50sen is no longer fundamental support, it is purely goreng sahaja.
Please take note M&E business is a very competitive business, profit margin very thin. You can secure many project, but you must management it carefully, coz the margin is very thin (5-8%), any mistake or project delay will eat up your profit. Fair value should be 35sen-40sen. Below 30 sen is a good grab.
Hahaha…you guys can say all you want about value etc. In my 20+ years of investing, you know it’s all up to the operators.
Yes, you can talk about fundamentals (I value fundamentals too btw), but there are times where when things are hot, it could explode…look at the property sector. Why the heck do you think UEMS and IWCITY are on exorbitant valuations right now? It’s about future potential and it’s also about goreng. Heck yeah ! it’s about goreng.
Yes, at 50+ sen it appear high at the moment (partly because of its recent non stop move up). Even then it’s 22x PE. If they want to goreng, it’s one heck of an upside before I would say it’s dangerously high. (As I’ve mentioned, I believe their profits may increase by 50% or maybe even double in 2024, therefore, in terms of forward PE, it’s not horribly inflated)
Now, I’m not saying it’s going to be 70-80 sen for sure in the near term (because stocks normally move in waves and not in a straight line). I’m just saying it’s not impossible. It’s all up to the operators.
As for catching below 30? I would say, that’s quite a stretch. Maybe…if something catastrophic happens to the business !
As for me, I would start taking profit bit by bit, and not sell everything, in case the improbable does happen. Even if there is a correction, this stock has much potential for the next few years.
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....
Davidl
1,816 posts
Posted by Davidl > 2023-10-19 14:26 | Report Abuse
All time high now! Surely More to go!