James Yeo "Since the end of 2016, Gadang Holdings (KLSE: 9261) has undergone around 290% drop in its price. It is currently trading at MYR 0.9, as of 23 March 2018, its 52 week low." I think is 29%.
Before corporate exercise, the highet share price is about RM3.22, which is equal to RM1.28 after share split & bonus share. Compare to recent lowest price at RM0.80, it dropped by 37.5% in 3 years time. But need to check again how much mother shares being increase following the conversion of warrants to shares.
Last Friday, Gadang closed at 81.5 sen per share, its lowest point since July 2016. That marks a 28.95% drop since the start of the year.
At the time of writing, its price-earnings ratio (PER) stood at a meagre 3.62 times. The share price drop has pushed its yield to 3.7%, according to Bloomberg data.
Back in January, when the PER was roughly double at seven times (share price at RM1.14), RHB Research called the PER level “undemanding” and “unwarranted”.
It cited Gadang’s RM1.6 billion in outstanding construction order book, which should sustain earnings for the next three years. Meantime, its lacklustre property business was already priced in at the time, RHB said.
Gadang is vying for contracts from the Light Rail Transit Line 3 project and Pan Borneo Sabah highway construction to replenish its orderbook.
All three research houses tracking Gadang have buy calls on the stock, with target prices between RM1.48 and RM1.69.
gadang is definitely good in the long run, but don understand why the selling pressure is always so strong, has been selling since the split, about 1 and a half year already.
Gadang acquired remaining 49% equity interest of Datapuri S/B for cash consideration of RM2.5 million. Thus, Datapuri would be wholly subsidiary of the Group.
@okdoke, I did not go into that detail (although is good practice). I just take last 5 years average (from annual report) of ROE, it is about 14.5%p.a.. (Last 3 years average ROE is about 16.6%p.a.). Past few months, nobody will talk much about fundamental, as our share market is sentiment or momentum oriented (more of a short term volatility).
@sosfinance, thanks for your reply. I am thinking to invest in this gadang or ekovest or wce for my daughter ( longterm ) and have to pick the best in this construction/toll industry. As a newbie, the calculation of ROIC for ekovest seems make sense ,however the calculated ROIC for Gadang appear too good to be true ( maybe there are mistakes in the calculation). As for WCE , I have yet to commence the calculation. Anyway thanks for your write up.
Datapuri owned by Tan Sri Dato Kok Onn's nephew..It looks like I create a shell company, then I let my uncle buy over my company using public fund, then I share the profit with him? o.O
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....
angkokann
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Posted by angkokann > 2018-04-09 14:35 | Report Abuse
slowly up liao, still cheap ???