The company has failed to deliver any consistent profit to its shareholders for the past 10 years. The company would likely post a loss of more than RM10mil in FY18 and I doubt they can reverse the losses in FY19 given the current weak property market (which is even worse outside of Klang Valley).
Investors may need to wait for the property market to rebound back for the company to start posting profit but I still doubt it would be substantial enough when compared to the company’s market cap. Even if you take the FY17 profit of RM6.5mi, at the current share price, the company would still be valued at a high valuation of more than 22x PE.
If you are looking to diversify your portfolio outside of Pasdec (due to its earnings uncertainties and relatively high valuation) 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 6.9x PE (based on target FY18 profit of RM145mil. 9m profit is already RM106mil). PB is low at only 0.7x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17.
FY19 growth will be driven by the still high demand of the new Myvi and the newly launched SUV Aruz and also the newly revamp Alza in 2H19. The recent announcement of closure and potential disposal of the loss-making alloy wheel manufacturing business alone is expected to boost the company’s profit by an additional RM20mil. I am projecting a profit to shareholder of RM170 mil for FY19 which at the current price values MBMR at only 5.9x PE.
Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. There are 8 analysts in total covering the stock with most of them having a TP of above RM3 (all have a buy rating). The average TP for the 8 analysts is around RM3.50.
PASDEC sud benefit a lot fm ecrl I think . The major shareholder at one time wanted to take it private at a higher price if remember correctly . Nta 86 Sen.
This bastard company always play this tactic ..this is d 3rd time .shareholder xan complain to sc / bursa to check irregulaties. Listing requirement enforce board of director to issue annual report or else facing jail term.
It was formerly pahang state govt owned but due to changing of federal govt d chinese subscribed most right issue n emerged as major shareholders.
Personally i prefer state to hold this compant than chinese individual.
What a shame.. state company drop to a chinese bizman..
General Announcement for PLC Dated at: 11/03/2021 KUALA LUMPUR HIGH COURT ORIGINATING SUMMONS NO. WA-24NCC(ARB)-37-12/2020: LKL ADVANCE METALTECH SDN. BHD. ("PLAINTIFF") AGAINST CRECOM BURJ GLOVES SDN. BHD. ("DEFENDANT") (SUMMONS) 19/03/2021 1:22 AM
4x revenue bcos of share sales. tomorrow fly above 0.500/0.800/1.00. not much shares float on klci. easy to fly... with strong fundamental it is not impossible to be next dataprp/dnex/xianlng/paragon/peb
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....
Solehajb1989
29 posts
Posted by Solehajb1989 > 2018-11-28 12:44 | Report Abuse
Qr loss