MASTER (7029) - One Masterpiece

MASTER (7029) - One Masterpiece

Master-Pack Group Berhad is primarily engaged in the business of manufacturing corrugated cartons and providing one stop packaging solution and services to customers.

What could be so interesting about this packaging company?

Let's have a look at the latest share price movement of the company.

Master-Pack had been seeing a long consolidation at the range of RM 0.80 for more than 10 months. The consolidation had been long enough to see Master-Pack getting ripe enough to see a break above in it's share price. With the recent huge momentum volume, Master-Pack is currently all set to challenge above RM 0.90 technically, while a strong challenge backed with a substantial volume will see Master putting up against RM 1.00 very soon.


Master - Master Plan

 Master-Pack had been performing better for the FYE 2014. For the 3rd quarter of FYE 2014, Master-Pack had saw gradual increase in it's revenue and also a significant increase in it's EPS. A quick comparison saw Master-Pack 3 consecutive quarters result improving by 22.75%, or 1.24 cents.

Master-Pack revenue saw a rise when more companies start to adopt a greener process in their business operation, which is what Master-Pack can provide through corrugated carton packaging which are recyclable, cheap, light and good cushioning effects as compared to plastic foams, metal and wood containers.

While Master-Pack had been performing better, it's underlying freehold assets in Penang which had a net book value back at 2009 is a great reserve to the group potential NTA booster when revaluation takes effect. Currently, Master-Pack NTA is standing at RM 1.15 per share. At the current price of RM 0.81, Master-Pack is trading at a 29.5% discount to it's current NTA.

Coming up Catalyst

Beside from it's improving business revenue and net profits, Master will be finalizing it's FYE 2014 in the month of February 2015 which most will be anticipating a surely better result for FYE 2014.

Master-Pack is anticipated to reflect a 2014 EPS of around 9 cents to 9.5 cents. Taking a 9 cents EPS with a PER x10 will see Master being valued at RM 0.90.

While result are coming up, a better catalyst might not fall short for it's latest private placement proposal that is getting approval from the Bursa Malaysia soon.

According to the regulation of the placement, the price of the private placement shall not be lower than the par value of Master-Pack shares, which is RM 1.00. This automatically will be looking at the lowest possible price placement of RM 1.00. Current price of RM 0.81 is a 19% discount to the lowest possible private placement price. With this in line, Master-Pack shares are looking set to soar nearer to RM 1.00 or above RM 1.00 in order to cope with the private placement.


Master-Pack will be a good look out with the following pointers
- Improving quarterly results
- Current price is 30% discount from it's NTA of RM 1.15
- FYE 2014 result might comes with a dividend announcement
- Projected EPS of 9 cents for FYE 2014, trading at PER x10, Master to be valued at RM 0.90
- Incoming Private Placement that will be seeing a lowest possible price of RM 1.00. Current price is 19% discount towards the lowest possible placement price.


Hit before the placement? You decide.


Bone's short term TP: RM 1.00

Cheers and have a nice day

Regards,
Bone

http://bonescythe.blogspot.com/