Very slowly improving but Q4 results will show again how undervalued Eonmetall really is. PE below 6 gives room for substantial reappraisal towards Rm 1 within short. Mid term around Rm 1,50 is no dream. This means 100% gain for a solid no nonsense counter.
The Q report is in my opinion very unclear about operating margins. Revenue developping great but operating profit negative? What is behind all those accountancy-technical adjustments? As a shareholder I want to have insight in the profitability of the real operations and this is completely in-transparent. The only positive statement of the management is that they foresee an encouraging development of the results in the new year.
Although I believe that the operations of Emetall are sound I am extremely disappointed in the reporting of the company. Today with minus 9% is not a good day to sell but after a recovery (I hope) I will sell this counter and never come back again. Bad customer relation behaviour.
The bookvalue per share is Rm 1.09 so long way to go. Bookvalue increased dec 2016 - dec 2017 from 0.93 to 1.09 thus a plus of 16 sen. A lot of value has been created but unfortunately not as Earnings per Share and that is what the market wants to see.
@coecoe , this QR report like the Lsteel QR 3 report , a lot untranparent account . Lsteel since the QR 3 release and drop like shit , never stop. I can tell you , the price would not climb up like Lsteel . Lsteel is your mirrow . And pls avoid buy this same family control share. They are big liar...
even Q4 loss money, but the cash and cash equivalents much much better from Q3 -6.676m to Q4 +4.436m. company still do good job. just hold and see the next Q1
Time to accumulate this ctr. Moving up quietly. Suspect insiders collecting ahead of coming qtr ending 30 Jun. Company Buyback since early this year when price was low. Good indication of better results and expected dividends
We maintain our BUY call, forecasts and FV of RM0.92 based on 8x FY18F EPS of 11.5 sen. This is at a discount to the manufacturing sector’s average 1-year forward PE of 10-11x to reflect Eonmetall’s relatively small market capitalisation. Eonmetall has entered into a build-operate-own-transfer (BOOT) arrangement with Felda Palm Industries Sdn Bhd (Felda Palm), a 72%-owned subsidiary of FGV. The arrangement entails Eonmetall to construct, commission, operate and maintain a palm fibre oil extraction (PFOE) plant each alongside six Felda Palm’s existing palm oil mills on a profit-sharing basis over 10 years. Upon successful implementation of these six PFOE plants, the same arrangement may be extended to another four palm oil mills owned by Felda Palm. We are positive on the latest development. Eonmetall has effectively delivered what it guided, i.e. concluding a major deal with a major planter involving the investment in several PFOE plants on a concession basis. Eonmetall will get two bites at the cherry: (1) profits from fabrication of the plants; and (2) recurring profits from the sale of the residual palm oil extracted over 10 years. We are keeping our forecasts which have reflected this. We continue to like Eonmetall for the growing acceptance by palm oil millers in Malaysia and Indonesia for its solvent oil extraction plants. Eonmetall enjoys good margins for these plants in the absence of competition, coupled with the in-sourcing of inputs (steel products and metalwork machinery) used in the fabrication of these plants. The next phase of growth for its solvent oil extraction plant business could come from the introduction of the concession model. The model is attractive to palm oil mill owners as it requires minimal capital outlay from them as Eonmetall will fund the construction cost of the solvent oil extraction plant in exchange for profit sharing. Source: AmInvest Research - 5 Oct 2018
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....
RiceNoodle
38 posts
Posted by RiceNoodle > 2018-01-26 13:19 | Report Abuse
strong fundamental counter, should be back 0.80++ very soon