GTRONIC – Fundamental Analysis (6 Jul 2014)

GTRONIC Analysis:-

Excel – http://1drv.ms/1xwSA75

My View:-

– Fair Value
  – 3Y DCF: 3.8 – 4.14 (MOS: -14% -> -5%)
  – Absolute EY%:
    – FY13 (EPS: 0.19): Buy below 3.08, sell above 3.63 (MOS: -20%)
    – R4Q (EPS: 0.202): Buy below 3.27, sell above 3.85 (MOS: -20%)
    – FY14 (EPS: 0.202): Buy below 3.76, sell above 4.43 (MOS: 2%)
  – GTRONIC is already fully or over valued.
– Strong fundamentals backed by improved earnings quality, better earnings visibility and healthy balance sheet with strong cash position – note that GtRONIC is expected to post its third consecutive years of record earnings in FY14E and we expect another solid year ahead in FY15 (+14.7% yoy)
– Shariah status – Globe could be trade at a premium given the ample domestic liquidity and strong participation by domestic institutions.
– I will study this stock further.

Latest Financial – Q1 2014 Financial Report (29 Apr 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1608269

At the time of writing, I did not own shares of GTRONIC, and categorized this stock in the Watch List.

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