MrOTB, Welcome back. If Gadang can keep up with its double digit growth, more rerating will come.
Not many looking at their Water, Hydro, Plantation & Solar, when mature, can contribute reasonable return. Focus how much of the Shareholder' Fund invested in these sustainable income.
They have similarity to OCK tower ownership biz that many may overlook. Separate the Sustainable Earnings biz (investment - lower ROE due to gestation period of project)) & Its normal biz ( i.e. construction and property - higher ROE). From there you will realised, the sustainable earnings biz should be given higher weightage.
After all, Gadang, without sustainable earnings has double digit ROE, with sufficient order book like now, should at least deserve double digits PE multiple, and, what more are net cash (how many developer or contractor has net cash and growing).
As i said, i trust gadang management will perform well. MRT2 project only to boost the share price. So, i invested gadang. Seen like now it will be uptrend for gadang and be shine on 2017.
Today is gadang n construction companies day ! New contract factor can last for at least 2 months bcoz other bigger projects will soon. Election is coming
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....
culbertlim
393 posts
Posted by culbertlim > 2017-03-12 11:08 | Report Abuse
Buy