It is understandable that a high growth company will need to conserve cash; hence the low dividend payout of 30-40%. Mature companies invariably have a high payout ratio. In many instances, leveraging its balance sheet to boost ROE.
Signature is not a furniture manufacturer as it outsources the low margin manufacturing function. A model used by Apple and Nike. When its brands gain traction in large developed markets, the top line is expected to grow exponentially. The business model is highly scalable.
Earnings growth is expected to be 25-35% over the next couple of years.
A clear winner at tp 2.63 by cimb ...wondering whethr its kitchen business ,a game chnger in d making.....seems tis compny on right rails n its blnce sheet looking good too....but 2.63 fr tis business ,may look overpriced....2 me... any comments ?
CIMB top 3 small mid cap stock pick for 2014. Target price of RM2.40. CIMB has incredible track record of small mid cap winning stocks. MyEG, Prestariang, Bonia, Perdana, etc.
If the profit growth momentum can maintain, I think CIMB TP of 4.23 can easily hit within this year. On the current EPS, the share price should be at 2.6-2.7, buy now below 2 is very safe, after CNY will not be able to get below 2. Feb should be able to hit 2.2-2.3 easily. I am IN.
CIMB Research has maintained its Add rating on Signature International Bhd at RM1.80 with a higher target price of RM4.23 (from RM3.12) and said Signatures 1HFY06/15 core net profit came in above house expectations at 132% annualised. Mainly due to stronger-than-expected topline growth and greater economies of scale.
In a note Feb 15, the research house said Signatures 2Q15s RM12.1 million net profit was the best ever quarterly results for the company.
CIMB Research said it was raising its FY15-17 EPS forecasts by 45-54% to reflect higher revenue growth and greater efficiency.
Our higher target price is based on an unchanged 30% discount to SOP (the discount to reflect its small cap and tight trading liquidity).
Potential re-rating catalysts include securing more major contracts and continued profit margin expansion. The stock remains an Add, 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....
kingcobra
2,772 posts
Posted by kingcobra > 2013-12-28 17:03 | Report Abuse
IT SEEMS THAT NO DIVIDEND PAYMENTS ...PLEASE CHECK EVERY MONDAYS ON STAR PAPER ...STARBIZ