sectoral rotational play, after goreng energy/healthcare next will be tech stocks, stay tune, just check other tech counters too (Dsonic, MYEG, IRIS, JHM, Mi Tech), fund started to collect d
Current share price = RM1.22 Current EPS = RM0.0277 Current PE = 44 times
Normalise PE = 15 times Future EPS = RM0.081
Growth of EPS = 192%
Can REVENUE profit or EPS growth at 192% in coming future? Is its share price is overvalue at RM1.22 of PE 44 times today?
from past history REVENUE profit is grow around 45% on average so it will take around 4 years for REVENUE to reach EPS RM0.081 then only consider worth to invest at price RM1.22
@Vincy Wolf, if you take the comparison point at inception of Revenue Group, around Jul 2018 til now, REV has outgrown GHL by multiples. The last bonus issue for GHL was in 2014. Rev had one in 2019. Assuming 3000 shares at RM 0.6 in Jul 2018 (for ease of calculations)= RM 1800. Get free bonus warrant in Jan 2019= free 1500 warrants. Share split in Dec 2019= 3000 shares become 5000 shares (and 1500 warrants become 2500 warrants). If we take today's date, the value of your holding is 5000*RM 1.2= RM 6000. And the warrants is 2500*RM 0.5= RM 1250 for total of RM 7250. Thats 300% return in 2 years. If you hold GHL in Jul 2018, the price is just RM 1.6 to RM 2 which is 25% return in 2 years. Note that current GHL price is high due to creador acquiring and low trading volume. Otherwise, it would have stagnant around RM 1.6 until now. Of course, if you hold GHL since IPO (about 15 years ago), then you're a rich person if you still are holding till now. But remember, that is 15 years of investment.
Talking in the short term of 1-2years, Revenue has outperformed GHL in every way because Revenue has much more room for growth because it is still a small company.
If you're here to trade on technicals and jump in and out every week, then none of what I said above matters. But if you're investing for long term, the key is to find good companies which have a lot of room for growth to capture the evolving economy. I believe revenue is one of the few companies in position to do that.
This is not to say GHL is a bad company, it is just that it is well established already i.e it is much difficult to see it return 300-400% again, as it has already had its explosive growth in 2005-2010. Since both GHL and REV are in the same line and are competitors, my bet is on Revenue.
This is not a buy/sell call, please do your own due diligence.
uhm.. guys, wouldn't this give a good indications of how revenue group Electronic Transaction Processing (ETP) segment is doing? This segment is the most profitable segment of the group and according to the Alibaba results:
"International – building foundation for long-term growth. Our cross-border and international retail businesses continued to show strong growth in fiscal year 2020, as we only started to experience the negative impacts of the COVID-19 pandemic in February. In the twelve months ended March 31, 2020, Lazada, AliExpress and other international retail businesses had a total of more than 180 million annual active consumers.
Lazada – In fiscal year 2020, Lazada, our Southeast Asian e-commerce platform, saw robust growth momentum in its marketplace business, driven by strong order volume, which increased over 100% year over-year, reflecting strong user growth and improved purchase conversion rate as we continued to broaden our product assortment. Lazada’s order growth remained strong despite movement control orders imposed by governments in response to the COVID-19 pandemic.
Lazada introduced a stimulus package across Southeast Asia to help SMEs start online businesses. There was strong adoption of consumer engagement tools, especially livestreaming, by brands and sellers to engage with consumers and diversify revenue channels to compensate for drop in offline retail activities. "
During the March quarter, some of our businesses experienced slowing or negative year-over-year growth due to the pandemic.
China retail marketplaces – Tmall online physical goods GMV, excluding unpaid orders, grew 10% year-over-year, driven by growth of fast-moving consumer goods (“FMCG”), including daily necessities and household goods, and resilient demand for consumer electronics, which together grew approximately 25% year-over-year, offset by negative growth in other major categories such as apparel and accessories, home furnishing and auto parts. Combined customer management and commission revenues grew 1% year-over-year, reflecting an increase of 3% in customer management revenue and a decrease of 2% in commission revenue.
While the magnitude of near-term financial impact differs by business, the growth of our domestic businesses started to recover in March. Tmall online physical goods GMV, excluding unpaid orders, saw a strong recovery in April and continue to further improve in May. Similarly, Ele.me food delivery GMV growth turned positive in April as lockdown measures eased, restaurants began reopening and people began returning to work in China.
Why CIMB continuously reduce their shareholdings? Of course there’s something wrong with upcoming results.
According to revenue annual report: Group’s revenue & gross profit generated from EDC terminals: Revenue 44.1% and GP 35% in 2018; Revenue 59.8% and GP 44.4% in 2019.
revenue & gross profit generated from Electronic transaction processing segment: Revenue 47.3% and GP 56.4% in 2018; Revenue 34.1% and GP 47.1% in 2019.
So do you think there were many company wanna source more unit of EDC terminals as many as previous years in Last quarter?
I expect this time around the double digit growth from ETP will be offset by significantly lower contribution by EDC segment.
In this situation, if the group’s revenue & NP doesn’t grow in last quarter, of course ppl throw the shares, because the results unmatched with the company valuation now.
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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....
ViWizard
780 posts
Posted by ViWizard > 2020-05-08 15:19 | Report Abuse
paypal soared, is time for revenue to rises! haha