JHM net profit tripled in 2016 to RM20.3mil. It's unlikely that this will repeat in 2017, given current 1H net is RM15.7. Based on current EPS of 10.96 and assuming PE 25, EPS would have to be 40 in order to hit TP 10. Four fold increase of EPS is difficult. At 20% annual growth, it will take 7 years. At 30% growth, 5 years. However, based on the interview in this article http://www.theedgemarkets.com/article/jhm-expects-continue-double-digit-revenue-growth, with diversification into two-wheeler lighting from Japan and the aerospace LED lighting, which the boss Datuk Tan believes can overtake the traditional auto lighting in 3 to 5 years, TP 10 is not unrealistic long-term. Question is do you believe Datuk Tan can deliver; and importantly, for the duration, can you stay relax?
Before bonus, todays price is actually 3.13x2 = 6.26. So, if 5x2 = 10...realistic for the time being...if we mention 10 after bonus, 10x2 = 20, which is to big too achieve, and unrealistic now, unless next 1-2 years maybe, after completion of aerospace segment,etc..so for now, let be more realistic in defining our TP. My2cents:)
jilakak, wait whole day oso dun wanna come down more, force to buy 310 to 317, hstha sifu, you no power leh, find more bullet to taruk sama JHM la... TQ first.
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....
Clearsky
90 posts
Posted by Clearsky > 2017-09-06 11:49 | Report Abuse
tksw, if you don't hold shares, you may leave the board. You don't have to bash with no concrete evidence.