DGSB Share Consolidation Entitlement Details: Consolidation of every 2 ordinary shares in Diversified Gateway Solutions Berhad (DGSB) into 1 ordinary share in DGSB ("Consolidated Share") Entitlement Type: Share Consolidate Entitlement Date and Time: 21/12/2018 05:00 PM Year Ending/Period Ending/Ended Date: EX Date: 19/12/2018
Share consolidation simply means the share count is halved but the share price is double. Hence, the value is still the same. If the closing is 5.5s, then the next day after the share consolidation, the share price will be 11.0s
Hi Ameera, buy and hold. My reasons of investing in dgsb are : 1. Very small debts only RM 2.837m, 2. Cash in bank is RM 25.112 m, 3. Revenue is consistently RM 20 m average per Qtr, 4. Still making a small descent profit for the last 2 Qtrs and lastly 5. The business model is good especially in cloud computing
For the past 10 financial years the company has found difficulties in delivering substantial profit for its shareholders. Revenue grew at an average rate of 4.8% from FY10 to FY18 however profit to shareholders failed to follow suit. In FY18 the company recorded a loss of RM2.8mil to its shareholder.
I doubt FY19 would be any different compared to the company’s previous 10 years performances. At best the company might be able to deliver a small profit to its shareholders (around RM2 mil max). Even if they managed to do this, at the current price the company is still being valued at more than 30x PE which is high considering the company’s past performance record.
If you are looking to diversify your portfolio outside of Diversified Gateway Solutions (due to the weak earnings sentiment of the company), I would recommend you to look at MBMR.
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.0x PE (based on target FY18 PATAMI of RM145mil. 9m PATAMI is already RM106mil). PB is low at only 0.5x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17.
For FY19 growth will be driven by the still high demand of new Myvi and the launch of the new SUV in 1Q19 and also the new Alza in 2H19.
Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. Most analysts have a TP of above RM3 for the company with Hong Leong being the lowest at RM3.13 and Maybank the highest at RM4.18.
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....
trap666
634 posts
Posted by trap666 > 2018-12-12 21:01 | Report Abuse
those listen to SARA baru Sorchai @@! Be aware of this SARA please, dont manipulate by him ~