GKENT (3204) - George Kent - Eyeing Another Upside Potential 100%? (WealthWizard)
When I read this news yesterday (The Star - Another stocks rally in the works - construction, boosted by LRT3), I take a time to look at how respective construction outfits are doing lately by computing table 1.
It trigger my attention on George Kent (GKent) for its valuation given by the market.
Taking a brief comparison, the following are noted for Gkent:
1. Highest order book coverage
2. Lowest simple PE based on latest quarterly results (annualised)
3. Lowest Forward PE based on simple calculation of Next 1 year sales
Table 1: Comparison of Listed Construction Companies
Note: The above quick check is based on
the application of same factors & assumptions without looking at the
details, the general results may be varied from detailed analysis. The
purpose of quick check is to take a quick look as a whole for simple
comparison.GEORGE KENT - UPSIDE POTENTIAL OF 100% @ RM4.40
With construction order book of RM6.2 billion in hand, GKent will deliver following revenue & results below: (Please click links for references)
With Forward PE of 15, it gives GKent huge potential upside at current price!
Important Assumption:
NO new construction job in next 4 years
ESTIMATION OF REVENUE & PROFIT FOR NEXT 1 YEAR
Based on the above basis, I have incorporated the amounts into the following table:
Table 2: Financial Projection for next 1 year
Please click on the link of the following table for bigger picture & easier reading on how the basis used in the calculation:
My Words:
All the above working, calculation & assumptions are presented based on my personal own judgement and for sharing purposes only. I never think I can move anything unless the thing want to move by itself.Do your homeworks, read all news & reports, set your best judged basis & assumptions and make sure you truly understand the business & company before buying any shares.
Invest only with FREE money, never use emergency money to invest, using emergency fund to invest is gambling, crazy & suicide act.
