oranje Hi i am back. My Condo at KL sentral cordoned off for 2 weeks for my language in this portal. Totally politically motivated harrassments for my outspoken comments on sacred cows Tan Sris Zeti and Tony Fernanfucx. But i am ok now. A test from God almighty. All my Ferrer Roche eaten by the glutonous authorities though.
If the rev company promised to the shareholders that the new core business to be inject to rev Asia before the deadline on the August 3 2018 and if not don't continue let it be PN17 and delisted don't cheat the shareholders money.
We trust the rev Asia .We don't want this company to be like other companies that words and news from their mouth is all affluent shit.they are not sincere and they are cunning.
Haha hahah ahahahaa. I knew some bullshit going on. This stock sold down by 5c. Someone made money out of suckers. Good I watch only yar Nora. Nora, Nora...
Haha. I know are orang tipu haha. Why I wanna buy so much or even.buy at all cos this counter TIN Kosong. Lots of noises only. Haha. Nora, you kena sangkut kah. Kikiki
After selling its entire business to Media Prima for RM73.5mil back in mid 2017, the company has yet to make any substantial moves to acquire a new business. So, for the time being the only logical way to value the company is by valuing its balance sheet. As of Dec 18, the balance sheet comprises of mainly cash amounting RM6.3 mil. Basically, the company net tangible asset value is only 5 sens per share. Which means at the current price the company is being valued at a very steep premium of 4.3x PB.
Any new business acquisition will need to be made via equity capital fund raising. So, if you are buying this company, once they have identified a business that they want to acquire, you would most probably need to pump in more cash later. I don’t think they can buy anything with only RM6mil. Till then, the company will continue to post losses of around RM1mil per year for administrative expenses.
On another note, the news of Rev Asia Holding Sdn Bhd acquiring a stake in a Chinese media company has nothing to do with Rev Asia Berhad. The former is actually a subsidiary of Media Prima ( who was the buyer of the entire business of Rev Asia Berhad).
If you are looking to hedge your portfolio outside of Rev Asia (because of the lack of any business and also the very high valuation vis a vis the asset that they have), I would recommend you to look at MBMR. (https://klse.i3investor.com/servlets/stk/pt/5983.jsp)
MBMR is a direct proxy to Perodua via its 22.6% interest in the company. Valuation is cheap at only 6.6x 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 5.5x 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.
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....
Mohd Fahmi Bin Jaes
29,135 posts
Posted by Mohd Fahmi Bin Jaes > 2018-03-03 20:50 | Report Abuse
Sell