GTRONIC (7022) – Fundamental Analysis (1 Mar 2015)

GTRONIC (7022) – Fundamental Analysis (1 Mar 2015)


GTRONIC Analysis:-

Excel – http://1drv.ms/1ECwmFV

Notes – http://tinyurl.com/mtp76p4

My View:-

Valuation
       
5Y DCF
           
Good Scenario: 4.71 (Fair value uncertainty: HIGH)
           
Base Scenario: 4.32 (Fair value uncertainty: VERY HIGH)
           
Bad Scenario: 3.95 (Fair value uncertainty: VERY HIGH)
           
Ugly Scenario: 3.61 (Fair value uncertainty: EXTREME)
           
At current price (4.85), based on RDCF, assumption of FCFF growth rate in the next 3 years is 14%.
       
Absolute EY%:
           
Trailing:
               
FY14 (EPS: 0.229) – Fair value 3.17 (Fair Value Uncertainty: EXTREME)
               
R4Q (EPS: 0.229) – Fair value 3.17 (Fair Value Uncertainty: EXTREME)
           
Forward:
               
FY16 (EPS: 0.321) – Fair value 4.43 (Fair Value Uncertainty: VERY HIGH)
               
FY15 (EPS: 0.283) – Fair value 3.91 (Fair Value Uncertainty: VERY HIGH)
           
EPS applied to reach the current stock price (4.85): 0.351
   
Shariah status – Globe could be trade at a premium given the ample domestic liquidity and strong participation by domestic institutions.
   
GTRONIC has been consistently delivering steady earnings growth by keeping pace with market demands. This was shown in its latest quarterly results announcement. With a growing cash pile, the company mostly will continue its attractive dividend payouts. I believe that there is still slight room for the stock to appreciate further with expectation on another solid year ahead in FY15.
   
Dividend Yield is around 4-5%, not bad. However, valuation wise, GTRONIC is not attractive.

Latest Financial – Q4 2014 Financial Report (24 Feb 2015) http://www.bursamalaysia.com/market/listed-companies/company-announcements/1882841

At the time of writing, I did not own shares of GTRONIC.

https://lcchong.wordpress.com/