SCIENTX–Fundamental Analysis (21 Mar 2014)

SCIENTX Analysis:-

Excel – http://1drv.ms/1gEBWr7

My View:-

– Fair value/Market Timing:
  – 5Y DCF: 7.34 – 8.32 (MOS: 19% – 29%)
  – Buy under 4.50, sell above 6.45
– While the rise in raw material prices had affected margins for the manufacturing segment, I remain positive on SCIENTX’s longer term prospects. Ongoing expansion plans for higher margin consumer packaging films and product extensions such as the thinner gauge film (6 microns) should also provide added buffers against margin contractions. At the same time, the group has also recently completed the expansion of its stretch film capacity to 194k MT/ annum (Dec 2013), which would provide the impetus for growth in manufacturing revenue and accelerate the prospects of spinning off the Group’s property division.
– I have missed the opportunities of buying SCIENTX. Let see I got opportunity to buy it in the future.

Latest Financial – Q2 2014 Financial Report (20 Mar 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1571021

At the time of writing, I did not own shares of SCIENTX.

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3 thoughts on “SCIENTX–Fundamental Analysis (21 Mar 2014)

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