GKENT–Fundamental Analysis (13 Apr 2014)

GKENT Analysis:-

Excel – http://1drv.ms/1gmQsbi

My View:-

– Fair value:
  – 5Y DCF: 2.85 – 3.19 (MOS: 40% – 47%)
  – FY16 EY%: 1.48 – 2.47 (MOS: 31%)
– I still need to further study GKENT’s risks and challenges.
– GKENT has very strong competitive advantages where it is in a very good position in building wide economic moats.
– GKENT has been moving in the range from 0.4 to 1.7 since 2004. It couldn’t break 1.7 twice (2004 and 2010). However, since 28 Mar 2014, GKENT has been so bullish (without obvious correction) and closed at 1.7 on 11 Apr 2014. For those investors who spotted and invested GKENT at lower price, thumb up to them.
– I am keen to buy GKENT, but I rather wait GKENT to form a strong support above 1.7. I will consider buying GKENT if that happens.

Latest Financial – Q4 2014 Financial Report (27 Mar 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1577701

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


11 thoughts on “GKENT–Fundamental Analysis (13 Apr 2014)

  1. Now I understand why owner earnings is used for DCF computation instead of FCF as FCF can be greatly affected by changes of working capital (FCF 117 mi vs OE 39 mil).

    Thanks Mr. Chong for your kind sharing.


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