Most construction stock are traded at single digit P/E. VIZIONE is now at P/E of 20x and this is expected to reduced to 15x when next quarter result out which will reflect the normalized P/E after asset injection. At 15x it is still expensive. STRONG SELL.
You have to understand what does PE means for a company. If the company is growing and has a high PE, it still have potential in the market, unless the company is not improving.
Nicholasming91 U don't need to tell me what is P/E. Company like GADANG & GKENT has a net profit growth of more than 20% CAGR over 10 years, yet trading at a single digit P/E . That is real growth, what VIZIONE has is only expectation or mere illusion.
VIZIONE HLD: (MYR0.145) Ending year with a bang Maybank IB Retail Research
Vizione’s 4QFY5/18 net profit jumped 60x YoY and 37% QoQ, taking FY5/18 net earnings to MYR26.1m (+44x YoY). The stellar FY5/18 results were mainly attributable to stronger contribution by its newly acquired wholly-owned subsidiary, Wira Syukur S/B (WSSB), on 9 Oct 2017. No dividend was declared for the current quarter.
In FY5/18, construction EBIT rose 7.6x YoY, mainly contributed by a 9.5x YoY increase in construction revenue which was propelled by construction works undertaken by WSSB. Note that its effective tax rate was also lower at 27.1% vs. 71.8% in FY5/17. These more than offset the share of loss on associate level and one-off expenses amounting to MYR2.6m.
Going into FY5/19, WSSB is expected to contribute more significantly to the group, as Vizione would be able to consolidate the full-year contribution of the former in the new financial year. At present, the group has a strong pipeline, with current order book stands at MYR3.4b, providing earnings visibility until year 2022.
Among some of the on-going jobs are: 1)MYR137m contract to upgrade the Federal Road 12 (FR 12) from Gambang, Pahang to Segamat, Johor ; 2) MYR401m contract to build office suites in Jalan Sunway Semenyih, Ulu Langat, Selangor; and 3) MYR465m contract for Rumah Mampu Milik Wilayah Persekutuan in Setapak, Kuala Lumpur.
While pipeline looks strong, valuation does not look compelling. At current price, the stock is trading at a 20.7x trailing FY5/18 EPS of 0.7sen. That said, share price re-rating catalyst could come from more job wins and stronger results ahead. Note that warrants are not included in the EPS computation as they are out-of-the-money
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....
janggut
236 posts
Posted by janggut > 2018-07-25 15:58 | Report Abuse
Still have positive influence on vizi..someone kept collecting the shares and waiting for the best time to push..happy trading