With most of the sales derived from its major shareholder (with 68.5% stake) SAM Singapore, which is, in turn, owned by Temasek Holding (Private) Limited, this should continue to underpin the company future growth!
It is currently sitting on a strong net cash position and (according to 2015 AR), order book stood at RM3b- (should last more than 6 years!)
Most importantly, it is currently trading at 9 times PE and have a TTM dividend yield of almost 5%!
Last quarter was boosted by net forex (forex + derivative) gain of 5.3m. This quarter it is zero net gain. In spite of this, profit only dropped 3.1m. I'd say it is satisfactory.
icon123, I'm not a trader. Look at it this way, if you read the news past few days, Pratt and Whitney is investing as much as $40m in their factory in Singapore over the next 18 months. If you are patient, maybe revenue will go up, who knows? But don't look at me, traders might not have the same level of patience I have.
typical of Sam's board, they don't sugar coat their prospects. Aerospace division revenue expected to be stable, equipment manufacturing revenue may fall due to deferred Capex by semiconductor companies (is kesm affected by this bit?) while testing division still show promise
146mil cash in the piggy bank
Depends on which fence one is sitting on, if you are expecting spectacular profits, then you may be disappointed. For me, I'll hold on out. For its earnings visibility, trading at less than 10 pe or around 15 diluted is still very cheap
the last qtr when sam released a stellar result, the stock was sold down too. so, mr market is very fickle
i'd say the current selldown are mostly some with inside info prior to result release took early positions at the 6.3 to 6.5 levels. a quick profit for these
for a growth stock trading at less than pe 10, no reason to liquidate
plus with the last quarter result due in 3 months and prospects of a nice dividend declaration, why sell? remember, they have 146mil in the piggy bank
Ayoyo, if you take into account of the loan stock, the PE will be 15. The last date for conversion is 2018. So just assume PE 10 is entirely misleading.
We should compare Q3/2015 result with Q3/2014 result, not Q2/2015. All EPS, NTA, revenue, and net profit are increased. I don't see why we need to get disappointed with the financial results.
Post a Comment
People who like this
New Topic
You should check in on some of those fields below.
Title
Category
Comment
Confirmation
Click Confirm to delete this Forum Thread and all the associated comments.
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....
sharktank
805 posts
Posted by sharktank > 2016-01-29 15:39 | Report Abuse
it only has one problem. it can't grow as capacity already full.