Invested in this share 6 months ago. Never regretted. 

Prolexus is apparel manufacturer, listed since 1993. Their plants is in China and Malaysia and the products are mainly exported to Europen Union, US, Australia and Asia.

The operating efficiency for the company based on the latest quarter result are:

ROE: 18%

ROIC: 25%

Profit margin: 6%

PE: 6.6

EY = 16.81%, which translates into ev/ebit of 6

Reason for keeping this stock is simply the stock has been benefiting from the recovery of US economy and strengthening of US dollar. The efficiency of the company is satisfying since last 3 years. 

However FCF has been negative because company has allocated RM15million for buying a piece of land earlier this year.

Dividiend yield is only 2% based on the 3.5 sen per share / RM1.65 per share price.

The recent 5 for 2 bonus has boosted the share price by 5%, but is the EPS of 25 sen (PE 6) is too good to ignore.

Trading at ev/ebit of 6, I would pay maximum price of RM1.90 for the current situation, excluding the future growth of the company.

Where are the bloggers who posted about this share few months ago and the share price peaked to RM1.80? Sounds like a group pump and dump. Research carefully before you all decided to buy.

This is not a recommendation to buy or sell. The author is not responsible for any loss,liability or risk incurred as a result of the use of this content. The blog post is purely for sharing purpose only.
 

PS:

LBS and Kuchai have fallen since I have written about them. But if you follow the company announcements, directors of LBS has increased their stake through warrant conversion and open market purchase during the sharp fall last few weeks.

While Kuchai is still pending for the dividend announcement. 

The price of stocks may be volatile but I am still believe the businesses I have invested in.