26 Jan 2016
UMS NEIKEN GROUP (UMSNGB 7227), it is the company fundamental is good,
good dividend with low PE, and volume of share is low in the market. But
the cumulative period of preceding year to latest Q3 of revenue
declining compare to last year mainly due to domestic demand is low
after implementing GST with weakening of ringgit.
Company products are electrical appliances & accessories, major of
them are made of copper, resin and polycarbonate (produce from oil)
Thus, the company is benefited with low commodities price with weaken of ringgit,
As per above picture shown, company is
benefited by weakening ringgit against USD, financial liabilities contain 23%
of total financial asset.
Company
historical result:
As above picture show,
1.
Revenue does not improve much, it may improve
after Vietnam factory begin to contribute to the group.
2. Margin
% & ROE are improved
3. Steady
cash flow
4.
Low debt as below,
Debt
analysis (RM '000)
|
2010
|
2011
|
2012
|
2013
|
2014
|
Cash
& cash equivalents
|
8,788
|
5,254
|
7,049
|
13,105
|
14,573
|
Long
term debt
|
0
|
0
|
0
|
8,087
|
7,638
|
Short
term debt
|
6,726
|
5,214
|
2,903
|
3,723
|
1,309
|
Cash
to debt & equity ratio
|
17%
|
10%
|
12%
|
18%
|
18%
|
Rule
1 debt analysis
|
0.00
|
0.00
|
0.00
|
3.16
|
1.23
|
D/E
ratio
|
0.00
|
0.00
|
0.00
|
0.13
|
0.11
|
As a result, I believe the EPS will improve compare
to last year, as now:-
Q1 + Q2 + Q3 + Q4 (assume Q4 the lowest among
these 4 quarters)
3.35 + 1.98 + 3.55 + 1.98
(Assume) = 21.72 cent
If PE = 8, targeted price
will be 8 x 0.2172 = RM 1.74
If PE = 10, targeted price will be 10 x
0.2172 = RM 2.17UMSNGB (7227) - UMS NEIKEN GROUP (UMSNGB 7227)
http://windscopo.blogspot.my/2016/02/ums-neiken-group-umsngb-7227.html
UMSNGB, UMSNGB (7227), 7227, EN7227, KLSE:UMSNGB, Investing,
第一天投资理财日记
