I think investors are overreact on the 3Q result with panic sell down due to poor illiquidity. Excluding the one off impairment, FY16 could still made around RM60m, about 62% increase YoY (as compared to FY15). If assume earnings only flat of increase slightly to RM70m in FY17, current price at RM5 only translate to 11-13x P/E. This is significant discount to its parent company in Swiss which commanded above 20x P/E. I would be a buyer at this price.
Stock: [DKSH]: DKSH HOLDINGS(M)BHD
2016-11-28 21:45 | Report Abuse
I think investors are overreact on the 3Q result with panic sell down due to poor illiquidity. Excluding the one off impairment, FY16 could still made around RM60m, about 62% increase YoY (as compared to FY15). If assume earnings only flat of increase slightly to RM70m in FY17, current price at RM5 only translate to 11-13x P/E. This is significant discount to its parent company in Swiss which commanded above 20x P/E. I would be a buyer at this price.