Malton Berhad is an investment holding company which operate in property development, construction and project management segment. Malton is also launching few property development projects.
Projects coming up
1) Ukay Springs, Ampang semi-detached and bungalow houses
2) Sungai long mixed development
3) Sungai Buloh commercial development
4) Nova Saujana serviced apartments
5) V Square at Petaling jaya city center phase 2 (expect to complete in june 2012)
6) Amaya Maluri at Kuala Lumpur ( Expect to be completed by end of 2012)
MARKET CAP = RM273.86MILLION
SHARE OUTSTANDING = 418.10
PAR VALUE = 1.00
CURRENT SHARE PRICE = 0.65
ROE = 14%
ROI = 11%
PROFIT MARGIN = 15.6%
AVERAGE EARNING GROWTH RATE = 45%
QUICK RATIO = 2.5
CURRENT RATIO = 2.7
DEBT TO EQUITY = 33.1%
CURRENT EV/EBITDA = 5.27
NTA = 1.40
DIVIDEND YIELD = 3%
CASH PER SHARE = 0.76
Comment on fundamental view
Base on fundamental view, i will reckon or recommend investor to buy and hold this share at the price of 0.67. Fundamentally, this company has a strong cash holding and they have increase around 200% to 0.76 cash per share. With this amount of cash position, the company will be able to pay out more dividend or clear some of their debt in bad times. Besides, the company earning have been growing since the past 5 years and i am expecting for the year 2012, the company will remain resilient with the uncertainty around the globe.However, the management remain positive on the earnings of the company as there are few more properties that will be completing this year.
Intrinsic value of Malton
However, for property company, i prefer to take a look at their asset they have and the upcoming projects.
With their NTA o 1.40 its 50% discount base on their share price, therefore, Malton is the only company that are trading way below their NTA. Moreover, their historical PE is around 7. With their earning remain around 20 sen per share, their share price should be 1.40 per share and this is exact the same as their NTA. Therefore, I am predicting a 20% discount and giving my target price for malton a 1.20 per share. Although their earning may be looking down, but for property company, their value is on the property they have and the upcoming projects inclusive the completion of some projects. On the other hand, It is also estimated that their total GDV of 1185m which is three times more than their enterprise value. After deducting their debt that will be incur for all the projects, it is estimated that their gdv will be around 680m and with a discount rate of 5%, it will come to a 537m base on their GDV. On per share price basis, their share price suppose to be approximately 1.38 per share.
Technically, i will recommend investor to accumulate at 0.65 to 0.67. Support will be 0.65 and resistance will be 0.70 follow with a strong resistance of 0.76. Lastly, buy at your own risk and invest wisely! happy investing!