Based on last eps 5.99 and annualised P/E of 10, Lbalum should be rm2.40. This is not taking into calculation of expected stronger earnings next quarter. Looking at the technical indicators, it has a rising RSI, and now has risen above its 10 and 30 days MA after its recent consolidation. The MA has not formed the golden cross yet but rising momentum should see it do so in a couple of days.In short, its looking promising for the stock.
Glove stocks drop badly due to the news of average selling price already drop that reflects in the SUPERMAX latest financial quarterly report. Glove stocks fall have cause FBMKLCI index falls as well and also drags other counters to fall even for the good counters that won't be affected by MCO. It is really emotional selling.
Aluminum price increases 15-25% per quarter in this latest 3 quarter(From May-July2020, Aug-Oct2020-Nov2020-Jan2021)
In comparison for the same period, LBALUM, earning per share,EPS was consistently growing up in every 3 latest quarter i.e 1.74cent, 3.76cent & 5.99cent respectively.
From Feb -May2021, Aluminum price is increased from RM1964 to RM2420. Therefore, the upcoming EPS will increase as well.
Revenue was consistently growing up in every 3 quarter i.e 113million, 125million & 144million respectively. Profit margin was consistently growing up in every 3 quarter i.e 3.84%, 7.44% & 10.36% respectively. Earning per share,EPS was consistently growing up in every 3 quarter i.e 1.74cent, 3.76cent & 5.99cent respectively.
LBALUM aluminium revenue came from import & export for its 3 latest quarterly result; Export RM139.1 million (36.4%) Local RM243.2 million (63.6%)
Due to at 20% higher Aluminium price and revenue, coming quaterly result, its earning per share & profit margin will be higher.
REMRKS Technical chart 3.2 This share is envisaged to be supported at RM 1.05 , for " the mid term " investors to collect for the mid term target price RM1.50.
3.3 Not recommend for trading buys, that mean no contra buy orders and sell orders.
3.2 Mid term target price- RM 1.50. agreed with your belief that LB Aluminium /9326 is reachable for RM 1.50 to RM1.60 level.
REMRKS Technical chart 3.3 This share is envisaged with immediate support at RM 1.05 , the current low price are done in 26, 27 April 2021 at RM1.05 ; for " the mid term " investors to collect RM 1.05 ,RM1.06 ( some form of margin of safety ) unless the whole KLSE turns completely bearish. , with the metal stocks leading the downwards trend . for better understanding , measure by monitoring Ann Joo / 6556 as the key indicator for metal stock.
3.4 LB Aluminium / 9326 for the mid term target price RM1.50.
3.5 Not recommend for trading buys, that mean no contra buy orders and sell orders.
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....
gohuat888
268 posts
Posted by gohuat888 > 2021-05-04 16:21 | Report Abuse
steel gogogogo infrastructure factory property 5gtower electrical car mrt ecrl rts solar shipping cargo all need gogogo