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.





1 comment:

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