EG (8907) - Stocks Picks (2017) by The Edge ; EG industries
The Kedah-based company is a growth stock despite the current harsh economic climate. A new substantial shareholder brought change to the company, enabling it to climb the value chain by providing box-building and reap the benefits.Box-building refers to end-to-end manufacturing services that start at designing and end at shipping of the completed products to end users.
EG Industries has graduated from being just an original equipment manufacturer.It now serves world-renowned electrical and electronic brand names in several industries, including consumer electronics, ICT, medical, automotive and telecommunications.
In FY2016 ended June 30, EG Industries posted a pre-tax profit of RM19.7 million, down from RM23.63 million the year before.However, it had booked a disposal gain of RM15.38 million in FY2015.Excluding the extraordinary gain, the group’s pre-tax profit would have been RM8.24 million that year.
The company’s growth momentum continued in its 1QFY2017, with pre-tax profit rising 41.6% year on year to RM7.14 million.
“We like EG Industries for its gradual transition into a vertical integrated EMS (electronic manufacturing service) player through its continuous expansion into the higher margin, full-assembly services segment, and its projected three-year core earnings CAGR of 40%,” says UOB-Kay Hian.
The research house sees the company’s net profit ballooning to RM30.6 million, or 11.4 sen per share, in FY2017 and RM36.7 million, or 13.6 sen per share, in FY2018.
EG Industries’ share price was hovering in a tight range of 80 sen to 90 sen for most of the year.
注: 如果照UOB預测2017及2018財政年,净利可达30.6m及36.7m来计算,不包括W在內,EG的股票數额为211.600,那2017財政年eps=14.5分,以12倍本益比计算,合理价=Rm1.74,2018年財政年eps=17.3分,合理价=Rm2.08.
除非基本面變坏,不然以八十多仙買进,上涨空間很大,下跌空間很小,认为是低风险的投資.
EG (8907) - Stocks Picks (2017) by The Edge ; EG industries
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