Bottomline of the results improving as their plan, of which are expecting beter results ahead with tandemly increasing of the new production line . SURE WIN STOCK $$$
Revenue increased, profit increased, higher margin box build biz picking up, biz turned around, stock price still not moving much, PE at ~9 is still consider reasonable to a little undervalued, and everybody still seems not having much interest and confidence in this stock. If your view is that the biz will continue to improve and this turned around in rev & eps is not a 1 quarter thingy, then now is the best time to buy. Be a contrarian, buy when people nobody don't want to buy, and when it announce next Q results (even if it is flat to current Q), I believe the share price will start to move.
Debt moderate for their expansion plans, once Thailand unit listed shud improve furthur the debt level. Nothing to worry about, as long the management use their capital well.
paperplane play safe which could be a good thing. But allocated a bit for growth stock also okla. Adjust ratiolor but I think EG should be performing better loving forward, pretty sure the debt will be reduce and start to give dividend.
After done my calculating, on the fully contribution from Petani plant,
I find it will has a significantly raise of ' Net profit percentage ' from currently 3.2 % to at least 3.5 - 4.0%. Haven't take into account of recent Forex potential gain yet.
Eg going to be my 2017 Main Pick ,after Hibiscus .
The beauty part after achieving above good results , ( 1st) plants still have capacity available by 10%, (2nd) by 2018 EG shud be able to declare or implement Div. policy (perhaps apprx 3.5-4.5%) . (3rd) capitalise on it's Thailand unit after listing.
Not saying that high debt is good, but the significance of high growth will out weight the significance of high debt. If EG continue to grow it's rev & eps in the coming few quarters, the share will sure to go up, regardless of it's debt level. I have been monitoring this stock closely since last year, and I Can see that the turn around plan to switch focus to higher margin box build biz is slowly playing step-by-step, and started to show positive result in this recent Q financial announcement.
@ Kent98, The Directors has mentioned it before. juz somewhere during news to inject Jubilee industry to Eg, before Fund raising exercise.
2017 on ward , Profit from Box Built itself will overtaking their traditionally OEM segment ; given a 30% revenue from box built over the entire revenue.
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....
henrytham77
464 posts
Posted by henrytham77 > 2016-12-22 09:20 | Report Abuse
showing..gogogo..buy now no regret.