Go for long term growth stocks but buy and hold strategy might not work for everyone.unless you have 2-3 years holding power. This applies to most retailers { short term in nature }
Refer to my earlier comments dated 13/9, UOB has given a TP of RM2.15 based on 32x PE. However, I expect a higher TP if you can hold a bit longer, to achieve a TP of RM4.40 (based on industry PE of 40x)
The Group has obtained approval from the authority to operate at 100% workforce from September 1, 2021 onwards,
"thus the operation of the Group is expected to recovery on the remaining quarter". In addition to the orders from the medical sector, the non-medical businesses are also expected to contribute positively towards the revenue.
Thus, barring any unforeseen circumstances, the Group is expecting the performance in the remaining financial year to be satisfactory.
Guys n gals.....I believe most of you would have continued to hold on till now. We are now feel more confidence upon the results announcement. At least, we don't feel "uncertain" throughout the weekend break. Well, given its 9-month profit of RM17mil, full year of RM25mil is still very conservative. The company can even perform better during MCO (or 60% capacity period), thanks to its high margin products. I am not here to repeat the facts, but let's look forward.....Achieving RM25mil is not a big growth (as compare to those tech stock) if u compare to FY2020 PAT of RM23mil. BUT if you looking into FY2022 and FY2023, its growth potential is almost double given the full capacity operation (no more MCO lah), schedule factory expansion, confirmed order on hand with high level of entry level. Based on RM50mil PAT in FY2022, its forward PE will be around 30x. (based on current price of RM1.96). Immediate TP should be in RM2.64 based on FPE of 40x.
Again, for short term players, exit at its resistance level of RM2.40 level is good enough. However, long term players should continue hold on till its potential to be fully reflected in the next 5 years, if not at least waiting it to be transferred to Main Board by end of next year, and looking forward RM70mil PAT in FY2023 or TP of RM3.68 (based on FY2023 FPE of 40x). My comments on 20/10 remains valid should you be able to wait beyond FY2023.
Transferring into Main Board may not have its fundamental value, but it will attract more institutions to re-look this counters. It is "lucky" for us to pick it up now before it was in radar of institutions.
Once transfered it's listings { Main Board } gives Supercomnet open up to more trade funds, banks, PRS, equity investment houses { currently unable to buy into the stock} due to certain individual policy limitations & restrictions
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
cherry88
986 posts
Posted by cherry88 > 2021-09-13 10:07 | Report Abuse
@wallstreetrookie.....agreed. We should focus on its future growth