APOLLO Analysis File – http://wp.me/a17Hxk-2J0
In the foreseeable future, I think APOLLO won’t have significant catalysts to boost up its growth. In view of inflation on key raw material prices and the volatility of MYR against foreign currencies, raw material prices are expected to be unstable in the forthcoming year. Coupled with the uncertainties in the global economy, the forthcoming year will become tougher and challenging for APOLLO.
Having said that, I expect APOLLO will still be able to achieve stable performance. In my projection, I factored in declining growth in its revenue and slightly higher COGS. Besides, I also considered that APOLLO won’t be able to maintain its dividend payout like previous years.
Its fair value is from 4.4 to 4.7, and I forecast its dividend yield will be around 4.8%.
At 4.98 (30 Sep 2017), its valuation is still not really attractive. Its dividend yield is 5.02%, but I anticipated that APOLLO may not be able to maintain its dividend payout like previous years.
I am currently in consideration whether I should buy some units of APOLLO for dividends, but the issue is “Is Apollo worth the premium?”. Perhaps, I should wait for the 2nd quarter results?
Join my FB group: https://www.facebook.com/groups/285121298359919 for more collaboration.