George Kent Bhd a value gem
George Kent (Malaysia) bhd is an investment holding and management company. The company is engaged in the manufacturing and marketing of water meters, waterworks fittings, fibreglass reinforced polyester panel tanks and a variety of hot-stamped brass products and components.
Fundamental analysis
Par value = 50 sen
Share outstanding = 225.31mil
Market cap = 324.44 mil
Current share price = 1.45
Dividend = 0.075
dividend yield = 5.2%
Cash from operating activities = positive trend
Eps = Consistent and have been growing as more projects are coming
Revenue CAGR = have been growing approximately almost 121% last 5 year
ROE = 15%
ROI = 14%
ROA = 8%
NTA = 1.16
Price to sales = 0.64
Cash per share = 0.93
Current ratio = 1.54
Beta = 0.81
PE = 9
Prospect of company
The main revenue source came from the construction side and the Ampart LRT Extension Project is expected to contribute positively and will significantly affect the earnings of the group for the coming financial year. Moreover, George Kent's manufacturing facility is undergoing a RM50 million 5 year transformation and modernisation program which will bring them a bigger effect on their financial position the next year years. George Kent has being penetrating into vietnamese market and also inroads in cambodia and Laos and the buoyant economy in Indo-China. This will eventually provide positive benefit in the long run of George Kent Business plan. George Kents revenue and profit source will have a steady flow as their subsidiary PNG water ltd has a 22 year concession with Papua New Guinea government to supply processed water to the capital city of Port Moresby. However, on the water side, George Kent is currently undertaking two major water infrastructure projects namely the Semantan Intake Package 3A of the Pahang - Selangor raw water transfer project and Panching Water Treatement plant in pahang value of more than RM 250 million which is each shareholder will receive one pie of the project. To be honest, i dont really find value in construction company but for george kent, their value is way higher as they have many project and many concession in overseas market and not politically link related and their company involves in manufacturing too which is a good growth in their business activities.
Financial View and intrinsic value
First and foremost, their cash at hand is so much that it comprises 64% of the share price and it is 0.93 cent per share. Besides being securing so much contracts, concessions, and manufacturing to export to other country, the company is still hanging on with a huge amount of cash. This amount might be able to allow them to expand further. Construction section, average pe for the market now is around 20 and for the last financial year, the eps of Gkent is 0.16 cent and i predict that since the last quarter they have a 50% increase in their eps, i suppose that with the profitability and expanding business they will continue to at least earn a 6 sen each quarter and come up with a total of 0.24 sen for this financial year 2014.
Thus the intrinsic value of Gkent is 0.24 x 20 = 2.40. Moreover, historically, gkent price to sales is around 1 and recent quarter its price to sales was 0.63 which is a good amount and if Gkent share price were to reflect its historical price to sales of 1 its share price should appreciate to 2.24 where i take the average amount 2.40 + 2.24 / 2 = 2.32 round of to 2.30.
Thus, i remain a target price of Gkent of 2.30 per share.
In addition to the 5% dividend yield that GKent is giving, this year with good financial performance, Gkent might be awarding their shareholder with a greater amount maybe comprise to a 6% dividend yield. Thus, i have started to accumulate this share and its one of my top pick together with picorp and upa, kmloong, tasco and tdm this year.
This is just my two cent point of view of the company, please analyse further and read up your own and invest prudently. Happy investing!
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Monday 7 April 2014
Thursday 27 March 2014
Progressive impact bhd fundamental
Progressive Impact bhd
Progressive impact corporation berhad is principally an investment holding company and provides management and administrative services to its subsidiaries. The subsidiary companies are principally involved in the provision of environmental training, health, safety and environmental consulting, lab testing, and provide management services and waste management engineering.
Fundamental analysis
Par value = 10 sen
Share outstanding = 658m
Market capitalisation = 178m
Current share price = 0.26
Dividend = 0.0136
Dividend yield = 5.23%
Cash from operating activities = consistent over past 5 years
EPS = consistent and haven't been in losing profit
ROE = 16%
ROI = 22%
ROA = 15%
Profit margin = 20%
NTA = 0.19
P/B ratio = 1.36
Price to sales = 1.8
cash per share = 0.02
Current ratio = 2.3
Beta = 0.4
PE = 10
Fundamental Analysis
Fundamentally, progressive impact has outperform the market and truthfully the fundamental of picorp is great for a share that is 0.26 sen. its profit margin has been always above 20% for the past 5 years. They have also been awarded by government under a 20 years concession for their services made to client, thus we can say that picorp wont have earnings issue in that sense that they wont ran into negative earnings. As you can see that government shares never fail to disappoint you, for instance, myeg, cypark, prestariang datasonic and bimb. Last 2 to 3 years if someone were to tell you to buy this few share especially myeg and prestariang and cypark, will you buy? Probably for prestariang as they have being awarded quite a number of government concession. How about cypark? Most investors will feel that where is the value of this ICT company? and these company debt are so high. You might not be interested. I once bought presbhd but sold it off after getting abit of profit as i was just speculating that since they receive quite a number of award, they should be able to perform but never though that its share price could surge to this high. Until today i cant believe the share price is so high and those company pe is way beyond 20 (Totally bullshit). Thus, what i am saying is, if you are in malaysia, government shares might pay off if the company has good fundamental and government are giving them projects.(Now that i have look through, for government shares, if you were to value it, whateva eps the company is multiply with a pe of 20 or 30 which is the true value) - JOKE - only happens in Malaysia. Picorp is a safe bet as it did not incur much debt or unsecured loan. Moreover, their cash flow over sales is positive which means most of their cash are incur from the sales. Some of the directors have been accumulating their shares since 15 cent and until today at high 0.27 cent which is a 80% capital gain and which the given out 5% of dividend, the directors are now filthy rich and yet they are not disposing any of the shares and more investors are accumulating the share since 20 cent and yet to take any profit.
I wouldn't advise you to buy or sell but this company but it is worth taking a look at. If the this year profit were to go up the share price might break 0.30 and there is when the share price might turn into a huge gain like prestariang and myeg. Lab testing comprises 37% of the picorp revenue and recently it increases 4% compare to previous year and mainly was contributed by the increase of sales from the operation in indonesia. Most likely, this will continue to help them in their increase in revenue segment.
However, this is just my two cent opinion, please further analyse the company and buy at your own risk. Thank you, happy investing.
Progressive impact corporation berhad is principally an investment holding company and provides management and administrative services to its subsidiaries. The subsidiary companies are principally involved in the provision of environmental training, health, safety and environmental consulting, lab testing, and provide management services and waste management engineering.
Fundamental analysis
Par value = 10 sen
Share outstanding = 658m
Market capitalisation = 178m
Current share price = 0.26
Dividend = 0.0136
Dividend yield = 5.23%
Cash from operating activities = consistent over past 5 years
EPS = consistent and haven't been in losing profit
ROE = 16%
ROI = 22%
ROA = 15%
Profit margin = 20%
NTA = 0.19
P/B ratio = 1.36
Price to sales = 1.8
cash per share = 0.02
Current ratio = 2.3
Beta = 0.4
PE = 10
Fundamental Analysis
Fundamentally, progressive impact has outperform the market and truthfully the fundamental of picorp is great for a share that is 0.26 sen. its profit margin has been always above 20% for the past 5 years. They have also been awarded by government under a 20 years concession for their services made to client, thus we can say that picorp wont have earnings issue in that sense that they wont ran into negative earnings. As you can see that government shares never fail to disappoint you, for instance, myeg, cypark, prestariang datasonic and bimb. Last 2 to 3 years if someone were to tell you to buy this few share especially myeg and prestariang and cypark, will you buy? Probably for prestariang as they have being awarded quite a number of government concession. How about cypark? Most investors will feel that where is the value of this ICT company? and these company debt are so high. You might not be interested. I once bought presbhd but sold it off after getting abit of profit as i was just speculating that since they receive quite a number of award, they should be able to perform but never though that its share price could surge to this high. Until today i cant believe the share price is so high and those company pe is way beyond 20 (Totally bullshit). Thus, what i am saying is, if you are in malaysia, government shares might pay off if the company has good fundamental and government are giving them projects.(Now that i have look through, for government shares, if you were to value it, whateva eps the company is multiply with a pe of 20 or 30 which is the true value) - JOKE - only happens in Malaysia. Picorp is a safe bet as it did not incur much debt or unsecured loan. Moreover, their cash flow over sales is positive which means most of their cash are incur from the sales. Some of the directors have been accumulating their shares since 15 cent and until today at high 0.27 cent which is a 80% capital gain and which the given out 5% of dividend, the directors are now filthy rich and yet they are not disposing any of the shares and more investors are accumulating the share since 20 cent and yet to take any profit.
I wouldn't advise you to buy or sell but this company but it is worth taking a look at. If the this year profit were to go up the share price might break 0.30 and there is when the share price might turn into a huge gain like prestariang and myeg. Lab testing comprises 37% of the picorp revenue and recently it increases 4% compare to previous year and mainly was contributed by the increase of sales from the operation in indonesia. Most likely, this will continue to help them in their increase in revenue segment.
However, this is just my two cent opinion, please further analyse the company and buy at your own risk. Thank you, happy investing.
Wednesday 26 February 2014
UPA TP
UPA Corporation Bhd. is principally engaged in investment holding and provision of management services. The Company operates in two segments: manufacturing, which includes manufacturing of paper-based products and plastic products, and machine trading which is engaged in selling, reconditioning and servicing of printing and printing related machines. The Other segment comprises operations related to the holding of properties and trading of plastic products.
Fundamental analysis
Par value = RM1
Share outstanding = 79.58m
Market capitalisation = 109.58m
Current share price = 1.36
Dividend = 0.08 sen
Dividend yield = 5.8%
Payout ratio = 53%
Cash from operating activities = consistent over 5 years
ROE = 9%
ROI = 9%
ROA = 7%
Profit margin (average for 5 years ) = 14% (2012 result)
NTA = 2.30
Price to sales = 0.80
cash per share = 0.50 sen
Current ratio = 4
Beta = 0.6
Fundamental analysis
Fundamentally, Upa is strong comparatively to other company with the 3rd quarter result accumulative of 12 sen and assuming that the next coming quarter with an increase in 4 sen which result to a 16 sen and with an average pe of 10 the target price of 1.60. Not to mention half of the company share price are comprises with its cash after given out all the dividend they are still holding huge amount of cash. This huge amount of cash can be use to cover all its debt in the company and if not the company can use the cash for expansion of the business. Many investor overlook this company and might not realise its true value of this company. This company has potential to go up to its target price of 1.60 because they are fundamentally strong and businesses wise, they are 50% recession proof as they are manufacturing paper and plastic. During recession, all business or company still need paper for printing and shampoos company need plastic for their packaging. Thus, i will say this company is a safe play with huge potential value. Moreover, they have huge dividend of 5% coming up in few months time and with this increase in this quarter the company might pay out a 6% dividend which is much better than fixed deposit in the banks. recently, there has been some buy banks from the company as the company buy backs the share because the company knew that the shares are undervalue. Crucially, the NTA of the company is 2.30 and however the company now is trading only at 1.36. During market and economy bull, most company are now trading above their NTA but however, UPA is still under consolidating mode and trading way below its NTA.
Technical analysis
Upa is now heading its uptrend after rebounding its 1.20 support level which is a good buy because i love buying uptrend shares and not downtrend. Its resistence if it can break 1.43 level. 50 day MA just pass through 200 day MA which might signal a buy signal. Bollinger band is heading upwards and once it squish upwards with consolidating prices around 1.30 to 1.40, its a good buy and target price of 1.60 to 1.70. If huge volume it might go upwards more. Macd just cut through signal line which might indicate a buy signal too.
Thus, i strongly recommend investor to accumulate but must be patient as its beta is only 0.6 thus volume might not be as high as other counter or investors are hoping to gain the 6% dividend, i will encourage u guys to park your money here instead of fixed deposit. By the way, please buy at your own risk as this is just my opinion and if the share plunge and u lose around 6 to 8% please cut losses and dont be greedy after getting dividend and the capital gain from increase in share price. Happy investing!!
Fundamental analysis
Par value = RM1
Share outstanding = 79.58m
Market capitalisation = 109.58m
Current share price = 1.36
Dividend = 0.08 sen
Dividend yield = 5.8%
Payout ratio = 53%
Cash from operating activities = consistent over 5 years
ROE = 9%
ROI = 9%
ROA = 7%
Profit margin (average for 5 years ) = 14% (2012 result)
NTA = 2.30
Price to sales = 0.80
cash per share = 0.50 sen
Current ratio = 4
Beta = 0.6
Fundamental analysis
Fundamentally, Upa is strong comparatively to other company with the 3rd quarter result accumulative of 12 sen and assuming that the next coming quarter with an increase in 4 sen which result to a 16 sen and with an average pe of 10 the target price of 1.60. Not to mention half of the company share price are comprises with its cash after given out all the dividend they are still holding huge amount of cash. This huge amount of cash can be use to cover all its debt in the company and if not the company can use the cash for expansion of the business. Many investor overlook this company and might not realise its true value of this company. This company has potential to go up to its target price of 1.60 because they are fundamentally strong and businesses wise, they are 50% recession proof as they are manufacturing paper and plastic. During recession, all business or company still need paper for printing and shampoos company need plastic for their packaging. Thus, i will say this company is a safe play with huge potential value. Moreover, they have huge dividend of 5% coming up in few months time and with this increase in this quarter the company might pay out a 6% dividend which is much better than fixed deposit in the banks. recently, there has been some buy banks from the company as the company buy backs the share because the company knew that the shares are undervalue. Crucially, the NTA of the company is 2.30 and however the company now is trading only at 1.36. During market and economy bull, most company are now trading above their NTA but however, UPA is still under consolidating mode and trading way below its NTA.
Technical analysis
Upa is now heading its uptrend after rebounding its 1.20 support level which is a good buy because i love buying uptrend shares and not downtrend. Its resistence if it can break 1.43 level. 50 day MA just pass through 200 day MA which might signal a buy signal. Bollinger band is heading upwards and once it squish upwards with consolidating prices around 1.30 to 1.40, its a good buy and target price of 1.60 to 1.70. If huge volume it might go upwards more. Macd just cut through signal line which might indicate a buy signal too.
Thus, i strongly recommend investor to accumulate but must be patient as its beta is only 0.6 thus volume might not be as high as other counter or investors are hoping to gain the 6% dividend, i will encourage u guys to park your money here instead of fixed deposit. By the way, please buy at your own risk as this is just my opinion and if the share plunge and u lose around 6 to 8% please cut losses and dont be greedy after getting dividend and the capital gain from increase in share price. Happy investing!!
Tuesday 25 February 2014
Maa out of PN 17 TP 0.80 cent
Maa has been long in PN 17 and there are few reasons why i am betting on Maa to find a way to restructure its company and getting out of PN 17.
Recently, Maa group and Zurich insurance company have settled a dispute over the sale of former insurance business where Zurich insurance will be paying 78 million in settlement which increase their cash pile to RM180 million. Maa has dispose most of their business and focusing on rebuilding and recapitalising their takaful insurance to a newer height. Moreover, with their recent cash pile and no borrowings in their book, Maa will also have plenty of room to grow up if they require to acquire new business or to increase their value of maa takuful. Maa has also recently dispose their mutual fund with a consideration cash of 53million which will in turn increase their cash pile even more.
Maa recently has show a 0.07 cent increase in their profit just by having its takaful business and after disposal of their bad business, maa shows and increase in their net asset and became a debt free company. Moving foward, Maa are planning to survive with its takaful business and strive towards bigger capitalisation of their business and continue showing profit growth. Thus, Maa has already dispose all their bad businesses, and has a huge cash pile in their balance sheet, growing revenue, growing operating operations, there is no reason why maa is still in PN 17.
Recently, Maa group and Zurich insurance company have settled a dispute over the sale of former insurance business where Zurich insurance will be paying 78 million in settlement which increase their cash pile to RM180 million. Maa has dispose most of their business and focusing on rebuilding and recapitalising their takaful insurance to a newer height. Moreover, with their recent cash pile and no borrowings in their book, Maa will also have plenty of room to grow up if they require to acquire new business or to increase their value of maa takuful. Maa has also recently dispose their mutual fund with a consideration cash of 53million which will in turn increase their cash pile even more.
Maa recently has show a 0.07 cent increase in their profit just by having its takaful business and after disposal of their bad business, maa shows and increase in their net asset and became a debt free company. Moving foward, Maa are planning to survive with its takaful business and strive towards bigger capitalisation of their business and continue showing profit growth. Thus, Maa has already dispose all their bad businesses, and has a huge cash pile in their balance sheet, growing revenue, growing operating operations, there is no reason why maa is still in PN 17.
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