D.A Consortium owned 25%, Jobstreet Owned 21%. Top 30 Largest Shareholders owned about 98% of shares, that cause the selling and buying transaction to be very low.
The company highest profit was achieved back in 2016 when it recorded a bottom line of RM4.4mil. Since then, the company had failed to deliver any substantial profit to its shareholders. In FY 18 the company only managed to record a small profit of RM1.4mil. At the current share price, the company carries a lofty valuation of around 50x PE. Given management track record, I doubt 2019 would be any different.
If you are looking to hedge your portfolio outside of Innity Corp (due to its weak earnings outlook and relatively high valuaiton), I would recommend you to look at MBMR. (https://klse.i3investor.com/servlets/stk/pt/5983.jsp)
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.7x PE based on FY18 profit of RM166mil. PB is low at only 0.7x BV.
FY19 should deliver another profit growth year to the company. Profit growth will again be driven by the performance of Perodua (via MBMR 22.6% holdings in Perodua) from the still strong sales of new Myvi, sales of SUV Aruz and the introduction of the newly revamp Alza sometime in the 2H19. Aruz which commands a higher margin compared to other models, will help improve the total profit margin of Perodua (which will flow to MBMR’s bottom line as well).
MBMR is expected to achieve a profit of RM200mil in 2019. At the current share price, the company is being valued at only 5.6x which is a lot lower than the industry average of 15x PE. As an example, UMW (another company with exposure to Perodua) is currently trading at a PE multiple of almost 20x.
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....
GCruey
41 posts
Posted by GCruey > 2013-02-16 00:48 | Report Abuse
Good