Canone TP is 495, not Kian Joo's. Canone's valuation assumed a PER of just 8.0x PER on the group's core earnings for FY13E. So the target price is a year ahead ie based on next year's earnings.
Acquiring controlled in Kian Joo does not add significant value or growth, as both are doing the same things and competing in the same market and customers. Worse as I see, it is a case of "Small eats Big". Therefore high borrowings which needs to be pay back and services to the lending banks. My 2 sen view is: cautious...need to carefully obtaining relevant facts and information on both companies before jumping in. May be it is much better to diverse to Johoretin instead. I have sold all my holdings in Kian Joo after Can One acquired it.
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....
kihoshi
84 posts
Posted by kihoshi > 2012-04-19 12:52 | Report Abuse
canone is performing well