SUPERLN (7235) - (fayeTan) - SUPERLN dividend's final entitlement date is today

1. Ex-date for 3.0 sen dividend is today. The ex-date is tomorrow 14-Jan-2016 which means effectively today is the last day to buy the share if you want to get entitled for the dividend. Payment date is 2-Feb-2016, just nice to be the Ang Pow for shareholders. Looking ahead, I am expecting full year FY16 dividend of 10.0 sen assuming payout ratio of 43%. This is conservative as SUPERLN last year dividend payout ratio is 68% (8.0 sen dividend with EPS of 11.81 sen).

2. Beneficiary of weaker Ringgit against USD. According to FY15 Annual Report page 86, export sales (outside Malaysia) amounted to RM54.09m (or 73% of Group’s sales of RM74.51m). Hence, SUPERLN has profited from the ringgit’s decline. The recent decline in oil price has affected Ringgit with latest USDMYR at 4.40.

3. Still like the stock with Target Price of RM2.80. The Target Price of RM2.80 is based on 12x PE on FY16 EPS of 23.5 sen. Key assumption is USDMYR rate to stay above 4.30. The 12x PE is the average 3 years PE and is also considered conservative due to its earnings growth expected at 70%yoy in FY16. First catalyst will be in March-2016 and the next one will be in Jun-2016. Investor need to keep an eye on USDMYR rate as my Target Price is assuming it to stay above 4.30. For whatever reason that USDMYR did fall below 4.30 consistently for an extended period (e.g. more than 3 months), then my TP has to be adjusted down accordingly.

4. Other positive factor on the stocks are: i) Mar-2016 result (3QFY16) likely to grow 70%yoy, ii) strong balance sheet with net cash of RM13.46m or RM0.23 per share and iii) Selling of shares by director has stopped.

5. BUY and SELL at your own risk.

SUPERLN (7235) - (fayeTan) - SUPERLN dividend's final entitlement date is today
http://klse.i3investor.com/blogs/genzinvestor/89690.jsp
SUPERLN, SUPERLN (7235), 7235, EN7235, KLSE:SUPERLN, Investing, fayeTan,