Solid can’t be at this price. All automation fly like hell, yet solid still not yet big spike. Still got room to move. Yesterday china automation many limit up too
Bought in SOLID (5242) for short term investment due to the followings :
1) Revenue increasing quarter 1&2 consecutively compare to last year similar quarters even though during tough pandemic movement control .
2) Profit margin increase consecutively current 2 quarters compare to last three years.
3) Operation cash flow from latest quarter showing company having positive RM10mil plus compare with last year quarterly cash flow negative RM2.5mil showing the management have changing the business strategy to pick up their growth.
4) Revenue on the domestic market increase 45% and International market ( middle east and africa) increase 41% reported during latest Aug annual report.
5) Company just completed constructing the new warehouse in Segambut in second quarter of Y2021 financial year. With the new warehouse in central region , company able to enhance the supply chain management and increase productivity in the central region and west malaysia.
6) Current 2 quarters earning per cents 0.63 and 0.53 showing that the projection of EPS per year shall be more than 2.5 cents. Compare with similar sector automotive parts listed company in KLSE PECCA PE ratio 38 , SOLID current price was deeply undervalue. Lets just assume minimum PE ratio for SOLID is 20 , this counter price should maintain above 50 cents.
7) If we trace back to historical SOLID price with similar EPS in 2017 with current EPS in 2021 , the SOLID price in 2017 was more than 50 cents and now the price only 20 cents a piece . With still have 150% safer room to spike , this counter definitely super undervalue gems stock among whole KLSE counters.
Conclusion : Solid is showing strong recovery in terms of revenue , margin and business strategy . Conservative target price 50 cents in short term should make it become great superstar after CNY. Just buy it and keep this , it will give you surprise reward in short term .
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....
calvin5025
535 posts
Posted by calvin5025 > 2020-12-31 12:31 | Report Abuse
will up until .26