bad: - slim margin on manufacturing/trading - most good earnings in prev qtr from others income (asset value,etc) - NOSH very very small, low liquidition (no wonder div is high to reward holders)
opportunity: - property sector may contribute to earning move forward
after re-consider, i decided to left and put the capital in somewhere else
At first glance, the company seems to be undervalue given the low PE multiple of 4.5x. However, after further verification, a big portion of the profit in 3Q and 4Q 18 was mainly due to fair value gain on investment amounting to RM25mil. Excluding those gains, the combined profit for the 3Q and 4Q18 would have fallen to only around RM500k. 1H19 core profit excluding gain on investment is only RM2mil. This means the 12 months trailing core profit for the company is only RM2.5mil. At the current price this would mean that the company is actually trading at a very high PE valuation of 50x. Even if the company managed to record a profit of RM5mil in FY19, this would still mean it is trading at a forward PE of 25x. Normally, investors would expect a steady profit growth of at least 15% (for the profit to double in 5 years) which the company might find it difficult to deliver given the current market condition.
If you are looking to diversify your portfolio outside of Atta Global (due to the high PE valuation and the weaker earning growth in the near term) 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 6.5x PE (based on target FY18 PATAMI of RM145mil. 9m PATAMI is already RM106mil). PB is low at only 0.6x BV. 4Q18 results is expected to be higher than 3Q18 and last year's 4Q17.
For FY19 growth will be driven by the still high demand of new Myvi and the newly launched SUV and also the new Alza in 2H19.
Please go through the analyst reports (https://klse.i3investor.com/servlets/stk/pt/5983.jsp) and do your own analysis before making any decisions. Most analysts have a TP of above RM3 for the company with Hong Leong being the lowest at RM3.13 and Maybank the highest at RM4.50.
Sc will be sued for suspending atta.. it is d problem of director why all investors are affected? Group of investors are meeting since 6pm to discuss next course if action.
Ooi in deep shit but should not affect investor due to fault of director ooi..
Tenant using premises for drug activities n company has terminated d rental agreement.. if it involved ooi nothg to do wt company.. sc has to lift d suspension.atta financial is sound
I think sc has acted overboard.. tenant commit in drug biz why atta has to be accountable until such an extend of accounts being suspended n share trading suspended??
It is only a breach of tenancy of lessee 's side.. very sceptical abt motive of such suspension..
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....
SuperPanda
11,431 posts
Posted by SuperPanda > 2018-08-14 15:08 | Report Abuse
Low volume but div very attractive. Coming qtr may hve final div.
Stop loss 80c