GKENT – Fundamental Analysis (19 Sept 2014)

GKENT Analysis:-

Excel – http://1drv.ms/1sB4z3J

My View:-

– Fair value:
  – Absolute EY%:
    – Trailing:   
      – FY14 (EPS: 0.161) – Fair value 2.13 (Fair Value Uncertainty: LOW)
      – R4Q (EPS: 0.126) – Fair value 1.68 (Fair Value Uncertainty: MEDIUM)
    – Forward:   
      – FY15 (EPS: 0.141) – Fair value 1.87 (Fair Value Uncertainty: MEDIUM)
      – FY16 (EPS: 0.155) – Fair value 2.06 (Fair Value Uncertainty: LOW)
    – EPS applied to reach the current stock price (1.58): 0.119   
  – I think GKENT is still undervalued. If we just looking at the current EY% and FCFY%, the EY% and FCFY% are 10.2% and 28.5%.
– GKENT has very strong competitive advantages where it is in a very good position in building wide economic moats.
– On 30 May 2014, GKENT completed the construction of the Semantan Intake Pahang-Selangor raw water transfer project, which was delivered on schedule. The completion of the former and the recognition of the tail-end revenue of the latter were the main reasons for the Group’s decline in its quarter-on-quarter revenue.
– I will accumulate GKENT as it is having correction now.

Latest Financial – Q2 2014 Financial Report (17 Sept 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1741749

At the time of writing, I owned shares of GKENT.


8 thoughts on “GKENT – Fundamental Analysis (19 Sept 2014)

    • I have sold off GKENT because of bearish reversal in technical analysis. Due to uncertainties in market, I personally won’t accumulate GKENT at this moment. I will wait until the market calms down first.

      As for you, this depends on your holding power.


  1. Hi KC,

    May I know how to perform EY% valuation?

    Is the said EY is operating profit / enterprise value, isn’t?


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