Part 2 of my analysis on relative valuation for Success. The stock is trading at very cheap valuation. https://klse.i3investor.com/blogs/kvinvestment/2021-04-05-story-h1563183389-Instead_of_Buying_D_O_JHM_MMSV_Globetronics_YOU_SHOULD_BUY_SUCCESS_Stoc.jsp

The target price for Success should be at least RM1.06.
https://klse.i3investor.com/blogs/kvinvestment/2021-03-29-story-h1543043742-Cash_Value_RM0_50_share_Forward_PE_3x_SUCCESS_Stock_Code_7207_is_UNDERV.jsp

Please find my analysis where the target price for SERBADK-C18 should be RM0.575.
https://klse.i3investor.com/blogs/kvinvestment/2020-11-25-story-h1536608085-Serba_Dinamik_A_Clear_Winner_with_TP_RM2_70_by_KENANGA_SERBADK_C18_IS_W.jsp

Please find my analysis on SERBADK-C18 which I believe should be priced at RM0.575.
https://klse.i3investor.com/blogs/kvinvestment/2020-11-25-story-h1536608085-Serba_Dinamik_A_Clear_Winner_with_TP_RM2_70_by_KENANGA_SERBADK_C18_IS_W.jsp

Please find my analysis on this wonderful O&G related stock. Target price of RM2.40 should be easily achievable given the recovery in the oil prices.
https://klse.i3investor.com/blogs/kvinvestment/2020-11-25-story-h1536608084-O_G_sector_making_a_comeback_SERBA_DINAMIK_BERHAD_the_Winner_TP_RM2_70_.jsp

My article on Prolexus Berhad. Hopefully the target price of RM2-RM3 is achievable given the good market sentiment for stocks related to healthcare/PPE.

https://klse.i3investor.com/blogs/kaviyarasu/2020-10-04-story-h1514445535-PROLEXUS_THE_UNPOLISHED_DIAMOND_DURING_COVID_19_TP_by_Mr_OTB_RM2_73.jsp

This is my thought on this fundamentally-strong company. Your comments/feedbacks are truly appreciated.

https://klse.i3investor.com/blogs/kaviyarasu/2020-06-11-story-h1508727517-MASTER_PACK_GROUP_7029_Maintaining_Decent_Earning_Per_Share_but_Market_.jsp

Hi @DickyMe and @BornToSpeculate,
I totally understand your point of view and that is why I didn't incorporate any growth in my numbers. Assuming the company continue to operate as it is before the whole crisis (which is why I didnt include the growth in demand), there is a huge discount to its price as at 30 March 2020. I was pointing out more to the mispricing rather than the growth of the industry and the company.

Hi @Rishi,
I think you are almost there in terms of the calculation. I will try to explain the 21.8x P/E of Supermax. As I mentioned earlier, the P/E calculation is based on LTM (Last Twelve Months). The latest financial report that Supermax published is for the quarter ending 31 Dec 2019. Hence, twelve months would be from 1 Jan 2019 - 31 Dec 2019. If you add the net income for all the four quarters in 2019, the total net income would be 34.6 + 14.4 + 24.7 + 30.2 = 103.9M. The weighted average diluted shares outstanding is 1307.87M. Hence, diluted EPS would be 103.9/1307.87 = 0.079.

As the price on 30 March 2020 is 1.73 (you mentioned this earlier), the P/E will be 1.73/0.079 = 21.8x. I am sorry if there are some discrepancies in the numbers due to rounding off.

Hi @char1234, I wouldn't be able to fully answer your question because I used relative valuation method to value the company. Relative valuation is finding a range of fair value of a company based on comparable companies which have similar business risks. Nevertheless, a simple answer to your question would be as follow. Assuming a 10% increase in net income, diluted EPS will then be 0.058 x 1.1 = 0.0638. Applying the min PE of 21.8x, the fair value will be 1.39.

Hi @Rishi, the figure was obtained from S&P Capital IQ. I am not able to share here the screenshot from the platform which would give you a clear picture on the calculation.

This is my thought about this stock. Let me know your thoughts once you have read it and if there is anything that I have missed in analysing this stock.

https://klse.i3investor.com/blogs/kaviyarasu/2020-03-31-story-h1485727040-Comfort_Gloves_Stock_ID_2127_A_Relatively_Undervalued_Stock.jsp