Posted by edcheong > 2024-01-17 21:35 | Report Abuse

Positives:

Recent share price increase: E&O's share price has seen a steady rise in recent months, closing at 0.715 on January 12, 2024, compared to 0.415 on September 23, 2023. This could be an indicator of positive investor sentiment towards the company.
Analyst consensus: Market analysts have a mostly positive outlook on E&O, with a consensus price target of 0.77 MYR and a high estimated price of 0.88 MYR.
Significant shareholder activity: Recent acquisitions of large share blocks by substantial shareholders like Kumpulan Wang Persaraan (DIPERBADANKAN) suggest confidence in the company's future.
Improving financials: E&O's financial performance has shown some signs of improvement, with a revenue increase of 15.50% in the latest quarter compared to the previous year.
Negatives:

Volatile market conditions: The global economic climate remains uncertain, with potential for further volatility in the stock market. This could impact E&O's share price.
High debt levels: E&O carries a significant amount of debt, which could raise concerns about its financial stability in a downturn.
Competition in the property market: The Malaysian property market is competitive, and E&O faces competition from established players and new entrants.

Posted by edcheong > 2024-01-17 21:39 | Report Abuse

Even before RHB research is published, the price of EO has hit the target price. So what does it say? It simply mean that the stock is completely ignored by the market fundamentals, barring the change of ownership, recycling of debts and improved cash flow via Kerjaya as subcontractor to which generous payment terms can be had. The Andaman Island and The Conlay alone makes the company solid in the next few years with higher ROE and EPS. The target should be set at 1.20.