GFM is a company that operates Facility Management. Facilities management services include electromechanical systems, security, cleaning and maintenance services.
Based on June 2019, the company has two business lines: 1) Facilities management services (accounting for 74% of total turnover) 2) Franchise rights (accounting for 26% of total turnover)
The company's turnover has continued to improve in the past five years, from RM 57m to RM 123m in 2018, with an amazing growth rate, CAGR of about 21%. GP Margin has remained at 27%-29% for the past three years, and the profit is quite high. Although a record high turnover was recorded in fiscal year 2018, after-tax profit fell to Rm12m compared to previous years, mainly due to the one-time cost of GPM's purchase of KPMD (KP Mukah Development Sdn Bhd) and some corporate activities last year.
If its projects with government etc remains intact, they should have years of orders to fulfill and moreover if infrastructure projects are to start, they have high chance to get them too...may I start to accumulate at this level to wait for them to go back above 50 ??
Don't touch this counter, the company is being managed by a bunch of incompetent management team. You will surely witness the share price appreciation over the years if managed well, but instead it depreciated. Common sense will tell you this company is NOT under a goodhand.
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....
Legend
4,119 posts
Posted by Legend > 2019-12-18 07:37 | Report Abuse
TP 0.25