Hunter2016, sound like you got opinion that Homeriz will gp opposite way of raise, can share your view here. I said it will raise just based on FA view of annual EPS of 10sen with PE=10, it's TP should be 1.00 with dividend yield of 4.0%.
Ya. tha's also my point said it is pretty safe to buy in at 0.8++...it is possible to raise up but not to drop due to the dividend yield. By only dividend itself already a good return, capital gain will be depends on Mr. Market. Just play safe first, earn later.
Liihen, Homeritz and Hevea sell a lot more products to offset forex loss and increase more profit. While Poh Just, Hlbhd and Latitude Tree could sell more but not a lot more, thus they can't offset forex loss easily but instead reduced in they profit.
Slowly increase in EPS is fine, just make sure the ROE consistently > 15%, D/E < 0.5, current ratio > 2 then enough. This is the best stock in Bursa currently, keep as long as possible.
Well I did a quick check. In 2015, their EPS is 7.83 sen. In 2016, their 2Q results showed that they have already generated EPS of 5.59 sen. But we do not know Homeriz's 3Q and 4Q results for 2016. Assuming that they did really badly for 3Q and 4Q, like their worst performance in 2011, (3Q 2011 EPS is 0.585 sen after dilution and 4Q 2011 EPS is 1.30 sen after dilution), their EPS for this year should still at worst case be 7.475 sen which is a 4.53% drop from last year. Homeritz normally pays out dividend in 3Q and 4Q. With a 40% dividend policy, the worst case scenarios dividend should be 3 sen (40% x 7.475 sen). Also note that during 3Q and 4Q 2011, USD/MYR rate is still hovering between 2.95 to 3.00 and in 2015, the USD/MYR rate is hovering between 3.66 to 3.70 before spiking in August 2015. Compared to today, the USD/MYR exchange rate hovers around 4.00. Of course, the worst that could happen is that they completely have no sales in 3Q and 4Q 2016. But after maintaining customers across more than 50 countries around the world for more than 5 years and with USA, which is one of their largest markets, in a much better economic situation currently, sales cant just disappear like that. Well I believe it is quite likely that their results will be better this year. Over the years, their net profits are backed up with strong cash flow and according to 2Q 2016, their net cash flow from operations also looks strong. Their CASH BALANCE is 2.81x their TOTAL LIABILITIES as of 2Q 2016. Loaded with cash, high probability of improved results, and a good dividend track record, all these evidence suggests a high probability of increased dividend payout for 2016. This is just my opinion based on the facts i got btw. Good Luck
They have already generated nearly 70% of last years eps in the last 2 quarters. 3Q and 4Q even if underperform compared to 2015 will still result in better eps compared to 2015. Strong cash flow from operations. Highest PE ever recorded is 14 while lowest PE is 11. If lets say there is 0 growth for 3Q and 4Q and it remained the same as it did for 2015, their eps in 2016 can conservatively hit 9.65sen, giving a forward PE of 9.30 which is below 11. Even if you take their worst 3Q and 4Q performance which is in 2011, their eps only dropped by 5% compared to 2015. I am not saying that they will guarantee 100% have higher eps in 2016 compared to 2015, its just very likely they will perform better this year. Higher eps with 40% dividend policy just means better dividends. Good luck
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
Report Abuse
Please Sign In to report this post as abuse.
Market Buzz
No result.
Featured Posts
MQ Trader
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: Supreme Consolidated Resources Berhad, a distributor and warehouser of F&B products, aims to list on the ACE Market!
MQ Trader 672 views | 12 d ago
0:17
New IPO: O&G healthcare service provider, Metro Healthcare Berhad aims to list on the Ace Market!
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....
Ivan89
1,479 posts
Posted by Ivan89 > 2016-06-20 21:13 | Report Abuse
Next mth u will know his power