This upcoming QR will determine whether this is still a undervalued investment or overvalued investment. The constant ESOS and warrant exercise coupled with buy back somehow makes an idea of the company is exchanging their own cash to let some small holders to cash out. Whereas who are the small holders, no idea.
A strong first-half earnings result underpinned by sales growth and operational efficiencies has put Power Root Bhd in position to capitalise on further growth momentum going forward.
RHB Research said the group's results in the first half of its financial year met its expectation at 53% of full-year estimate, but beat the consensus forecast at 60%.
During the period, Power Root's revenue surged 55% to RM241mil on robust domestic and export sales.
For the second quarter alone, net profit was up by a slight 2.3% to RM16mil as a result of higher marketing spending and Esos expenses.
The group declared a second dividend payout of three sen a share, bringing its year-to-date payout to six sen a share.
In its analysis, RHB said it expects the encouraging growth momentum to sustain after taking into account the fundamental improvement in its marketing and distribution strength, effect of price increases and rising contribution from new products.
It added that the strong US dollar will also bode well for its earnings as a net exporter.
RHB noted also that Power Root's competitors have raised prices more aggressively than the group, putting in position to capitalise on consumer downtrading under an inflationary environment.
"In addition, such dynamic renders it more room for cost pass through, if necessary," it said.
Post-results, RHB retained ts "buy" call and target price of RM2.60.
"We continue to like the stock for the efficiency hungry management team, established brand equity, and generous dividend payout," it said.
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....
Harry
1,330 posts
Posted by Harry > 2022-07-27 11:09 | Report Abuse
hahaha, 1.72.. warn you alll already from 1.8 ...