Saturday 3 March 2012

Malton

Malton Overview

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)

Fundamental Analysis
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.


Technical view
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!

















10 comments:

  1. Hi. The other potential driver is the possibility of privatization by main shareholder. Just a thought.

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  2. Wouldn't fund managers know about this and accumulate the shares or buy them now? It seems to me that they know something which is not obvious to all of us why the price is not reflecting it's NTA value ?

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  3. I have been studying this counter since Nov2011.
    It has good fundamentals ,PE is right and intrinsic value.
    However ,this counter fails to draw interest.
    The trading volume is low ,with price hovering around 63 to 72sens.
    Investors fear a long stuck despite positive ratios and figures
    Patience?

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    Replies
    1. Hi, yea.. i have been holding this company for for few months... Fundamentally, this company is quite strong, and the only reason fund managers are avoiding because of the price volatility. However, when you look at the share price you can see that whenever it drop, there is someone accumulating it.. Yea there might be some privatisation happening or someone is pushing it down so that they can accumulate.. For me, i will still hold and analyse further..

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    2. This counter meets 5 of your 7 points in Stock Screening.
      Your point (3) and (5) are why,I am still waiting for Malton.
      Without volume, undervalue ,fundamentals and intrinsic are helpless.
      The stock market thrives on rumours ,greed and speculations.
      Sometime a value stock like Malton is overlooked by the above.
      I am going for Oil and Gas counters like Dialog and Coastal.
      Happy Investing

      Delete
  4. Yea.. i agree with you.. malton is undervalue, but nt many interest in it.. Besides, i am speculating that someone might be pushing down the price from 0.73... and nw it might consolidate at 0.65 to 0.68... and if lucky enough.. it might rebound to break the resistance... thats just my technical and speculating view..
    Cheers...=)

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    Replies
    1. The stock market thrives on one 4 letter words ,spelled P.L.A.Y.
      Making or losing money here depends on Play.
      Fundamentals ,PE ,Cash reserve and intrinsic value are sidelined.
      When someone is playing up a counter ,volume surge.
      Greed ,speculations and rush overtake reasonings.
      The stock price rocketed.
      Recent evidence from Nicorp ,HWGB and Tebrau.
      None of these has any figure to match Malton.
      When profit is made by that player ,the play stops.
      Losses are for the greedies and clueless speculators.
      Look out for the start of a stock play.
      Not the middle or end or the play
      This is how profit is made here....PLAY

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  5. Yea.. You are right.. Most of it are play and speculating.. same goes to dialog.. Dialog fundamental is much superior compare to perisai and other oil companies.. But their share price is still under cooling mode.. Malton may be one of the play soon too.. Just speculating on it..
    Cheers.. thanks for the good comment..=)

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  6. There are so many good fundamental stocks in the market.
    Without any Play ,they remain as good stocks.
    It is difficult to identify which stock is in the Play.
    Buy at the start of the Play.
    When the Music starts ,its time to sell.
    Smart investors always profit this way.
    Good Luck and Cheers

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  7. Thanks for this great share. This site is a fantastic resource. Keep up the great work here at Sprint Connection! Many thanks.
    _______________________
    Malton homes for sale

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