On 28 November 2016, the Group successfully secured the distributorship for MYTV set-top-box
(decoder) in anticipation of digitalisation of the Malaysian television broadcasting in 2018. By then, all
households in Malaysia will require the decoders to receive television signals for continued access to
Free-to-Air TV channels. This distributorship is anticipated to contribute to Group revenue in the short-
to-medium term.
Given the Group’s extensive experience in the industry, the Board believes that the Group will be able
to manage the challenges ahead and remain competitive in the foreseeable future.
If the decoder is a monopoly business, it will not go to this company. If it is a non monopoly business, potential results is uncertain. Returns maygo to risk takers. I just retrieved myself temporary today pending new guidance. Good luck to those still onboard. TP58.
Unexpected poor results as the latest quarter should be good. Intense competition, rising internet sales, etc will add on the pressure for this stock. Unless speculative play, see no hope. 1st TP 50.
Investors that are hoping for Pensonic to suddenly turnaround and deliver a big profit in 2H19 or in FY20 might be putting too much hope on the management abilities. With the emergence of Chinese and Korean electric brands that are offering similar products at competitive prices, I am quite pessimistic on this company’s outlook. 1H19 result was a small profit of RM 200k (however it was due to higher tax rate given that the tax is for the trading divisions that recorded a PBT of RM2mil. The company could not use the losses from other divisions such as manufacturing to reduce the tax amount). PBT margin for the trading division has fallen from 2% recorded in FY17 to now 1.4% in 1H19 (even in FY17 margins was already depressed). Expect similar results in 2H19.
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.4x PE based on FY18 profit of RM166mil. PB is low at only 0.7x BV.
FY19 should deliver another profit growth year to the company. Profit growth will again be driven by the performance of Perodua (via MBMR 22.6% holdings in Perodua) from the still strong sales of new Myvi, sales of SUV Aruz and the introduction of the newly revamp Alza sometime in the 2H19. Aruz which commands a higher margin compared to other models, will help improve the total profit margin of Perodua (which will flow to MBMR’s bottom line as well).
MBMR is expected to achieve a profit of RM200mil in 2019. At the current share price, the company is being valued at only 5.3x which is a lot lower than the industry average of 15x PE. As an example, UMW (another company with exposure to Perodua) is currently trading at a PE multiple of almost 20x.
Don't hope as it is hopeless. Nonetheless, may be good for speculation as the price is quite low now. Anyway, market is just s bigger casino. All the best.
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....
win_win
85 posts
Posted by win_win > 2016-12-20 14:00 | Report Abuse
@victor tan, why?