I am puzzling with the volume and share price, is way to low for the volume on daily basis..infact the company is making good profit with bright prospect. Anyone know what is happening?
I am puzzling with the volume and share price, is way to low for the volume on daily basis..infact the company is making good profit with bright prospect. Anyone know what is happening?
[Ans] Yes this company can perform. But the downside is it never pay any dividend since 2011, thus stuck at low valuation.
PE is low at only around 6.0x and PB is only at 0.4x.
PAT has shown steady growth from RM10mil in FY13 to RM15.5mil in FY17. My target PAT for FY18 would be around RM16mil. Next year PAT growth from potential completion of the new 160 rooms hotel in George Town Penang as well as the rental from the new completed shop lots at Nibong Tebal.
Strong balance sheet with net cash position. Free cash flow positive but expect to be higher once the hotel is completed. Future capex will be mainly on expansion of manufacturing line.
Muda profit was high in 3Q18 at RM25mil. However wondering why the PAT is a bit volatile. For the past 2 years PAT ranges from a low of RM500k to a high of RM35mil. Do you know why? Will study it later.
Not sure why Orna is up. Maybe investors are anticipating similar profit improvement like Muda.
Good result mainly from the lower tax rate and also the contribution from the new Nibong Tebal shop lots (parked under investment in segmental report).
Hi i3lykan,
Agree with you that the attractiveness of the companies could be enhance if they start paying dividend. That being said, management did do a bonus issue last year which you can consider it as dividend.
I believe the reason for the management to do this is to conserve cash and put them into investments (such as new production lines, new investment properties like the Nibong Tebal shop lots and Georgetown hotel) which would help increase the bottom line in the future.
At the current price the company is currently only trading at a valuation of 6x PE. I am expecting a PAT of RM18m for FY18. PB is only 0.5x Cash from operation is positive but money will still need to be put into completing the hotel which is expected to open its doors next year. Once that is completed, free cash flow is expected to increased which might provide the possibilities for management to pay dividend or ventures into other investment that will help increase the bottom line. Both are fine with me.
Hi commonsense, you are right, management conserve cash for future investment is good, how about director's benefits. In 2017 pphb total profit was 15.5mil,the total directors emoluments was 6.9mil, it mean almost 44%total company profit go to company directors. Why don't the management declare less directors fee and give diveden to the company minority shareholders who support the company or put money in reserve for future use. Company like Flbhd, Cscstel, Fpi are so generous in giving good dividen to shareholders every year;but the directors only declare 10-15% of the company profit as director's fee. NO matter how good pphb is in future, if the directors especially the Koay family only thinking of putting money in their own pocket, is no more a good company in term of management.
Hi all, raiderphilip have a plan. If everybody work together and we sapu 51% of outstanding stocks in pphb, we can all attend the next agm and scold the directors of the company for taking 7 million is director fees when the company only produce 15 million in profits.
This is an outrage! Please someone share this article to more friends so we can bersih the horrible management into giving us that 0.01 dividend! ( 2 million only) I think 2 million in dividend is fair!
Don't you think so?
Please read more to learn for your safe investment in stocks. Patience will come to those who wait, and wait, and wait.
Please comment and discuss more on PPHB forum so we can drive more interest! Hopefully kyy will see this page and help us buy it out and change government! TUKAR! BERSIH!
Once change government, reduce director fee to free, introduce dividend payment of 50% payout, then PPHB share price sure go to the moon!
I'm trying to be the next kyy, problem is can only get my dividend from pbb next quarter to play with this stock. Next quarter 200k to eat up all the volume, I think I can eat 3-6 days of buying volume. Investing in microstocks can be fun!
But to be honest though, if koay family willing to sell me entire business for 100 mill I think it's a good deal. 15 mill profit yearly and 7 million directors fee sounds so juicy. I could pay off entire m&a in 4 years.
I plan to ask neither in law go agm, and tell them if they take less director salary say 5 million only, give shareholder some confidence and security with 2 million dividend ( they also earn 1 million as majority shareholder), after completion of quay hotel earnings rerate go up, sure confidence will soar and stock price will go up to at least 150 million. Worth what. They earn so much more if interests aligned with shareholders. (40 million networth become 70 million).
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....
Wzhai3932
132 posts
Posted by Wzhai3932 > 2018-08-16 13:12 | Report Abuse
Sebatian s power u are smart