GTRONIC – Fundamental Analysis (14 Dec 2014)

GTRONIC Analysis:-

Excel – http://1drv.ms/1wFdkdP

Notes – http://tinyurl.com/qx6gtpx

My View:-

– Valuation
  – 5Y DCF
    – Good Scenario: 5.57 (Fair value uncertainty: LOW)
    – Base Scenario: 4.92 (Fair value uncertainty: MEDIUM)
    – Bad Scenario: 4.34 (Fair value uncertainty: HIGH)
    – Ugly Scenario: 3.83 (Fair value uncertainty: VERY HIGH)
  – Absolute EY%:
    – Trailing:
      – FY13 (EPS: 0.19) – Fair value 3.96 (Fair Value Uncertainty: VERY HIGH)
      – R4Q (EPS: 0.222) – Fair value 4.62 (Fair Value Uncertainty: MEDIUM)
    – Forward:
      – FY14 (EPS: 0.238) – Fair value 4.96 (Fair Value Uncertainty: MEDIUM)
      – FY15 (EPS: 0.283) – Fair value 5.9 (Fair Value Uncertainty: LOW)
    – EPS applied to reach the current stock price (4.26): 0.204
  – Absolute PE:
    – FY14 (EPS: 0.189) – Fair value 2.31 (Fair Value Uncertainty: HIGH)
    – R4Q (EPS: 0.222) – Fair value 4.35 (Fair Value Uncertainty: HIGH)
– 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.
– As of now, GTRONIC’s DY% is only 4.2%. This is not so attractive.

Latest Financial – Q3 2014 Financial Report (28 Oct 2014) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1778113

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

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