Not sure, but project postponed is not a big deal, every project need to wait for government approval. Khalid case is going end. Now Hua Yang has 10 ongoing project and 4 development plan still in planning and be approved by the relevant units http://www.chinapress.com.my/node/555525
coz last year u holding tat time, don have so muc unbill sales, yet huayang dint launch new project, but now different, 808m unbill sales,with 1.1B new project to launch, fundamental is very good. On technical view, chart is trending up with bullish trend. Estimate middle of september will hit rm2.5-2.6
This is cum dividend price ,the actual cost today is 2.24 . If the CEO estimate comes true we can expect FV2015 EPS ( out in May 2015 ) to be about 34 cents or more, taking PE as 8 the price should be 2.72 giving a gain of 21% in 9 months , good enough or not ? you decide.
Do not be too concern with BI or RI, It won't change the fundamental value, but take a look of its PAT from year 2009, it improved from 8m to 11 to 25,52,70 to 82m for FY 2013 and also the management is confident of double digit growth for the upcoming year . With this performance I would expect the price to be higher. BTW don't worry too much of the RI, if it's coming the price would be pumped up first.
Generally, investment community does not welcome Right Issue as it is a cash call, meaning investors need to lend more money to the company. Learning from the case of Mahsing last year, when RI was announced, share price was pressed down significantly albeit it came with sweetener with Bonus Issue and Free warrant. Therefore for short term and medium term investors, RI does matter to share price.
Nevertheless as a long term investor who believes in growth story of the company, I like Right Issue very much. Right issue is normally comes with a significant discount to the prevailing market price to attract subscription. This will provide me a lower price to invest more in the company. It would be ever much better if it comes with sweetener with warrant and bonus issue. So, let us sit back, relax and wait for RI/BI/Wa.
last year not same, they dint launch much project, EPS getting lower, this year not same, coz project launching and unbill sales quite high, should be trending upwards. just hold and get some dividend for free use.
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....
Jeremy Loi Fuang Suu
130 posts
Posted by Jeremy Loi Fuang Suu > 2014-08-27 20:48 | Report Abuse
Not sure, but project postponed is not a big deal, every project need to wait for government approval. Khalid case is going end. Now Hua Yang has 10 ongoing project and 4 development plan still in planning and be approved by the relevant units
http://www.chinapress.com.my/node/555525