tomypak results is still strong with 3 cents quarterly dividend, not bad, free warrants coming, time to look into this company as has fallen 20% from peak
Good stock. No China man will be in a right frame to raise equity capital when the business is not good. This stock will return two (2) folds in the next 24 months... Building the plant is only a sensible thing to do because you can't build or renovate factory in stages when u deal with food related business.
Current Price = 2.56 NOSH = 109470000 Market Cap = 280243200
Debt = LT Borrowings + ST Borrowings = 5,428,000 + 21156000 = 26,584,000 Cash and cash equivalent = 17,249,000
EV = MC + Debt - Cash = 289,578,200 Ebitda (TTM) = 40,321,000
EV/Ebitda = 7.181820887
The latest QR wasn't too good, with the management citing increased cost of imported raw materials, higher energy and labour cost as the reason for higher cost of production that reuslted in falling PBT. Otherwise the borrowings have been reduced, cash and cash equivalent have been up so with the dividend yield I will continue holding Tomypak.
Don't worry. Small financial blip. They need new plant because capacity is close to 85%. If they run further, your machines will koyak. China men wont build factory if cannot sustain.
The thing, BP Plastic has been registering 5 consecutive quarter growth and did not face cost issue. It is also a net cash company as compared to Tomypak, frankly speaking I'm quite disappointed by Tomypak and it seems that CIMB's bearish report on Tomypak is correct.
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I think the stock is undervalue compared to competitor Daiboichi. Assume EPS 12-14 after rights. Trading at P/E 15x .. Fair value $1.8-$2.1 . This is based on current factory capacity. Some substantial shareholder sold down from $3 level . They should buy back at this level
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Posted by invest1188 > 2016-02-26 23:31 | Report Abuse
tomypak results is still strong with 3 cents quarterly dividend, not bad, free warrants coming, time to look into this company as has fallen 20% from peak