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Minda Global
While Minda Global is still relatively unknown to the investing community, its former names — Asiamet Education Group Bhd and Masterskill Education Group Bhd — should ring a bell.
The
company assumed the listing status of loss-making Asiamet in February
last year after completing a one-for-one share exchange arrangement with
the latter’s existing shareholders.
According
to group CEO Naresh Alagan, Minda Global is now a new entity with a new
mandate — to become an education group with the ability to generate
sustainable profit.
Although
Minda Global is still loss-making, Naresh says the group is targeting
to be Ebidta (earnings before interest, tax, depreciation, and
amortisation) positive this year.We are gradually coming out of the woods. Our turnaround plan is working well, and hence, we should see further improvements in FY2019,” Naresh says. Minda Global narrowed its net loss to RM15.9 million in FY2018 from RM28.8 million in FY2017.
“We would like to think that our share price has hit bottom. The only way is up now,” says Naresh, noting that the price weakness represents an opportunity to accumulate the shares.
“The stock price is not just based on our financial performance, but also based on what the market believes. It is a good time [to accumulate our shares] before it gets too high.”
Naresh was previously the CEO and executive director of AirAsia Global Shared Services Sdn Bhd Naresh oversaw more than 350 professional staff who provided financial, information technology (IT) and business support to the AirAsia Group.
He was also a manager with PricewaterhouseCoopers Advisory, Malaysia, and had a stint in Usaha Tegas Sdn Bhd and Maxis Communications Bhd, both controlled by low-profile billionaire T Ananda Krishnan.
Source: https://www.theedgemarkets.com/article/minda-global-hopes-third-times-charm
Comparative analysis
Minda Global is currently trading at a price-to-book value (PBV) of 0.4 times only against its net assets of 18 sen.
Relatively, it is the cheapest in the region and globally. Icollege Ltd in Australia, which has a similar market capitalisation size to Minda Global, is trading at 3x PBV despite loss-making and negative ROE.
Should Minda Global trades at 1x PBV at least, it only implies 18sen fair value.
Technical BUY, TP: 18sen
Based on Fibonacci projection, Minda Global can be easily rallied up to 18sen when it breaks out resistance level of 12.5sen.
It is expected to rally because of the bullish landscape:
(1) The share price has been trading above 200-day simple moving average and;
(2) Golden cross between 50-day and 200-day moving average.
https://klse.i3investor.com/blogs/investsmartway/216816.jsp
