MAGNI – Fundamental Analysis (12 Dec 2014)

MAGNI Analysis:-

Excel – http://1drv.ms/1zHrmNm

Notes – http://tinyurl.com/pgyuhwd

My View:-

  • Valuation:
  • 5 Years Projection:
  • 5-Y DCF:
    – Base Scenario: 6.62 (Fair Value Uncertainty: LOW)
    – Good Scenario: 7.49 (Fair Value Uncertainty: LOW)
    – Bad Scenario: 5.83 (Fair Value Uncertainty: LOW)
    – Ugly Scenario: 5.14 (Fair Value Uncertainty: LOW)
  • Absolute PE:
  • FY14 (EPS: 0.189) – Fair value 2.31 (Fair Value Uncertainty: HIGH)
  • R4Q (EPS: 0.382) – Fair value 6.09 (Fair Value Uncertainty: LOW)
  • Short/Medium Term Projection:
  • Absolute EY%:
  • Trailing:
  • FY14 (EPS: 0.387) – Fair value 2.97 (Fair Value Uncertainty: MEDIUM)
  • R4Q (EPS: 0.382) – Fair value 2.93 (Fair Value Uncertainty: MEDIUM)
  • Forward:
  • FY15 (EPS: 0.378) – Fair value 2.9 (Fair Value Uncertainty: MEDIUM)
  • FY16 (EPS: 0.431) – Fair value 3.31 (Fair Value Uncertainty: LOW)
  • EPS applied to reach the current stock price (2.58): 0.336
  • In long term, I believe that MAGNI is very undervalued. The projected fair values look like very unrealistic, especially because of low share liquidity. On the other hand, even if we cut the fair value 40-50%, MAGNI is still undervalued.
  • in short/medium term, MAGNI is slightly undervalued.
  • I will place MAGNI in the Watch List, and will continue to study its growth drivers and risks.
  • I think MAGNI should improve its share liquidity because it has strong balance sheet.

Latest Financial – Q2 2015 Financial Report (3 Dec 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1814837

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

Advertisements

2 thoughts on “MAGNI – Fundamental Analysis (12 Dec 2014)

  1. Hi LC,

    I have been studying this stock for a while and so far, it the income statements shows steady, yet sustainable growth yoy basis. Balance sheet wise, they have almost not debts and shows a healthy cash balance. What i am not sure at this point is the growth drivers. What makes this company different from the thousands of other garment factories around the region? Can’t find their competitive edge. Are you able to find any?

    Thanks.

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s