But prospect is quite nice la. "Moving forward, the Group expects growth in revenue and profit to remain favourable with domestic demands continuing to be a key driver." Maybe can goreng prospect.
Today, we feature a note on Wong Engineering Corporation Berhad in our FundTech Radar – 10th Apr 2018. The company is principally engaged in the manufacturing of high precision stamped and turned metal parts and components, complex welded frame structure, related modules and systems, as well as trading, marketing and retailing of industrial and consumer products. In FY17, total revenue was made up of 66% local market vs. 34% export market.
Fundamental Stance
· WONG saw its performance improved and turned profitable from FY16 onwards.
· Its FY17 core PATAMI margin surged to 15% (vs. 0.1% in FY16).
· Net cash position of RM6.7m (7 sen per share) as at 31 Jan 2018.
· Dividend yield of 2.1% for FY17 with a 28.5% dividend payout ratio.
· Final dividend of 2 sen and the ex – dividend date is on 16 Apr 2018
· Mr. Ong Yoong Nyock, the major shareholder, owns indirect stake in Tiong Nam Logistics Holding Bhd.
· The rising cost of raw materials and also foreign currency risk on sales and purchases denominated in USD will be the key factors affecting WONG’s performance.
· May assess and expand its presence into medical devices and other industries to diversify revenue streams and customers base.
· The RM87.5m GDV worth of affordable housing apartments is expected to contribute positively to its future earnings
· Currently trading at a 12-month trailing P/E of 9.1x (8.4x if excludes 7 sen net cash per share), a 35.5% discount as compared to its peers, which are trading at a 12M trailing P/E of 14.1x.
Technical Front
The long-term uptrend is still valid
Resistances: 1.22/1.42/1.64
Supports: 1.00/0.85/0.74
The above information is extracted from CIMB Research Report
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 > 2018-01-08 15:41 | Report Abuse
Dun miss the boat