Although its share price has rallied 64% in the past five months, we still see upside in PESTECH given the upcoming tenders in which it stands a good chance in securing a few. Upbeat sentiments from contract flows and bonus issues which will go "ex" on next Tuesday bode well for PESTECH. With its current order-book of RM660m, our FY14-FY15 revenue forecast is fairly achievable. On the back of RM880m new potential contract awards as mentioned above, we raise our FY15 orderbook replenishment assumption to RM600m from RM400m. This raises our FY15 forecast by 37%, thus our new TP is now upgraded to RM7.27/share (or ex-bonus TP of RM4.36/share) based on unchanged CY15 13x PER. OUTPERFORM reaffirmed.
Still OUTPERFORM with TP upgraded to RM7.27/share. With RM880m tenders outcome in the next six months with considerably good chance of securing several of them, we decided to raise our order-book replenishment assumption for FY15 to RM600m from RM400m previously. This increases our FY15 revenue assumption to RM450m, from RM335m previously, which we believe is not overly aggressive. Thus, our new FY15 forecast is raised by 37%. As such, our new price target is now upgraded to RM7.27/share (or ex-bonus TP of RM4.36/share) from RM5.34/share previously, based on unchanged CY15 13x PER. OUTPERFORM retained.
RM8 means RM4.80 after ex bonus. We will only receive our bonus issue on Friday. Just have patience and confidence that it will reach that target price one day.
No la bro.. buy within your means, i just kidding while looking at the queue buy/sell. Pestech float share and issued shares not alot .. when they push, it will up very fast and if they press it will come down all the way.
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....
Jack Ong
167 posts
Posted by Jack Ong > 2014-07-03 20:52 | Report Abuse
http://biz.sinchew.com.my/node/97928?tid=47
pestech boleh ... lol