The fire started around 1.00a.m (Thursday), 16 November 2017. No one was injured in the incident. The production floor was not severely affected and the Company estimates that operations can be fully resume within two (2) weeks. The assets are covered by insurance.
Since its ipo, Heng Huat had managed only to deliver 2 good FYs. One on FY14 which is the year of the ipo and another in FY15. Rm10.1mil and RM10.4mil respectively. Since then profit has fallen substantially. In FY18, the group recorded a core net loss of RM1.1mil (excluding one off items like loss on disposal).
Given that demand for the company's product in China is facing some slowdown and is not expected to record any substantial growth in FY19, investors need to expect results that is some what similar to FY18 (either losses or small profits only).
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....
alamak123
55 posts
Posted by alamak123 > 2017-09-25 23:07 | Report Abuse
yes,0.25 i m waiting for,who want sell to me ?i sold some at 0.325 if can get back 0.25 is a good deal.