Will it go up to 50 sen? Definitely. Will it go up more than now in 3 months? Definitely. Will it go up 50 sen in 3 months? There might be a rally in the near future, but if continue at current pace, then in my opinion is maybe not so fast.
Many factors in play, namely if economic situation recovers then more counters will grab attention over this counter. As I said previously, it's a naturally 'boring' IFM services, steady revenue throughout year, no excitement. Purely looking at its YTD revenue also, is just at 84m, and full-year is certain to be lowest compared to last 2 years.
However, their current profit margin at Q3 already on par with FY19, and it's very possible to beat their 2-year profit record, barring any tax hit like last year. On track to post +40% profit vs FY19, and that will definitely grab some headlines. If this happens, GFM will start FY21 flying.
In my opinion, lowest revenue but highest profit in 2 years especially in this eventful year showcases how much the board understand their business, and experienced enough to adapt to headwind situations. Look how they are also expanding to concessions, which now already supply almost 40% of their revenue just through KP Mukah alone (and will continue to provide steady income for the next 20 years). With the potential Amzass acquisition, they will certainly add to the revenue contribution from concession arrangements in the future, not to mention they keep expanding into new industry and reaching new set of potential clients. All this is on top of their already large RM1bil orderbook.
My own conclusion, this undervalued company has proper direction business-wise, and is looking to expand rapidly. It explains the pitiful dividends (only 1-2%, come on GFM, at least give us FD rates), and the goal since 2017 as far as I know has always been to reach the Main market, and so far I see that every company decision has been towards that objective, despite unforeseen bumps. Not a goreng stock, more like herbal soup that takes time to brew, to be enjoyed by seasoned veterans and the patient (pun intended).
Want 50sen in 3 months? Then must show at least multiple folds net profit of 5mil to 6mil in next QR. See how much contribution from new PIC and Educity contracts. Share price need to build new base first. As long as new buyers snap up all the old sellers shares. Old sellers will have no choice to buy back at higher price. Then the base will be higher. be patient.
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....
UlarSawa
35,552 posts
Posted by UlarSawa > 2020-12-03 15:42 | Report Abuse
undervalued stock. need time to show the potential. waiting patiently will be rewarded.