So difficult to understand, 1st quarter 2019 earning(NP TO SH) is RM55,013,000, the EPS is 1.51sen. The 2nd quarter 2019 earning(NP TO SH) drops to RM50,319,000, but the EPS is 0.96sen. When compare from RM55,013,000 to RM50,319,000, the drop only 8.53%, but the weird or can't understand is the drop of EPS is from 1.51sen to 0.96sen, the drop is 36.4%. If one quarter now only earn 0.96sen, 1 year is 0.96x 4=3.84sen. Now, one share is 86.4sen. Earning per year only 3.84/86.4= 4.439%. Can we earn money? most property counters earning become lesser and lesser. Why financial report sometimes very easy to understand, sometimes totally can't understand? If totally can't understand means I don't know the investment risks, therefore I shouldn't invest at all.
The confusion is due to perpetual securities interest payment made by mahsing this quarter. That's mean the actual net profit is 23 mil instead of 55 mil. Net profit figure is misleading. Must use EPS to calculate PER. Now PER of 9 is misleading.
PER should be over 10 if use EPS, but i don't agree with your 0.96 x 4 annual EPS. Interest payment for debt notes is not constant every quarter. Next quarter could be none. So using eps x 4 is for kindergarden investor to use.
Mahsing actual 2nd quarter 2019 earning was RM23.246,000 instead of RM50,319,000 due to the payment of perpectual securities, RM27,073,000. The EPS was total earning divided by total no of share(2,427,687,000) = 0.96sen.
Since Mahsing agreed EPS was 0.96sen. The actual earning must RM23.246,000. Why Mahsing told the whole world its 2nd quarter 2019 earning was RM50,319,000. Really misleading.
Kindergarden investor use simple term for normal people to understand. I think not only Mahsing use this complicated way to beautify their financial report, many companies do so. Many small investors(uncle/auntie) buy stock without any knowledge. They expose to high risk stock.
Just to tell you a simple fact. Except high dividend stocks every stock in Bursa is high risk. Just as you said financial report can be fake ! 3 principles to gamble in stocks: - Buy and sell on rumours. - Buy and sell on good and bad financial result. - Buy and sell at the right timing. That's it . simple like.
Every week falling at the rate of 1 or 2 cents per week, declining profit for 6 quarters with the latest quarter profits just a shed above RM 50 million,terrible property market sentiment.The only way this share price will stabilise in the near future is if the company buy back their own share which they wont be doing anytime soon..Dont need theory..just logic.
Buy call is just a guide.I wont be surprised if many of the buy and sell calls are indirectly manipulated by the company itself.If you trust buy call 100 percent,you are still new to the stock market:(
Mashing's debts to assets is very low and they're working out something new to cut cost by pushing up the productivity of construction. As long as their performance is healthy. Sometimes up sometimes down. This is no a bad idea to invest in Mahsing at all. At least you can sleep better at night.
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....
KL1234
4 posts
Posted by KL1234 > 2019-07-01 16:01 | Report Abuse
If continue to trade at way below Nta, better take it private.