Excel – http://1drv.ms/Vt4iln
– Fair Value
– 3Y DCF: 3.59 – 3.91 (MOS: -38% -> -27%)
– Absolute EY%:
– FY13 (EPS: 0.19): Buy below 3.19, sell above 3.81 (MOS: -30%)
– R4Q (EPS: 0.213): Buy below 3.57, sell above 4.27 (MOS: -16%)
– FY14 (EPS: 0.236): Buy below 3.96, sell above 4.73 (MOS: -5%)
– FY15 (EPS: 0.279): Buy below 4.69, sell above 5.60 (MOS: 11%)
– GTRONIC is already fully or over valued.
– PAT margin also expanded by +2.6ppts to 19.1% in 2Q14 from 16.5% in 2Q13. This is a result of better economies of scale, productivity improvement and effective cost control programme.
– Shariah status – Globe could be trade at a premium given the ample domestic liquidity and strong participation by domestic institutions.
– GTRONIC has been consistently delivering steady earnings growth by keeping pace with market demands. This was shown in its latest quarterly results announcement. With a growing cash pile, the company mostly will continue its attractive dividend payouts. I believe that there is still slight room for the stock to appreciate further with expectation on another solid year ahead in FY15, although the stock price has already advanced by +46.7%ytd.
Latest Financial – Q2 2014 Financial Report (5 Aug 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1702209
At the time of writing, I did not own shares of GTRONIC.