Net profit jumped 46.41% in the 3Q FY16 despite forex loss. Proposed special dividend of 4 Sen per share
Superlon Holdings Bhd, a producer of thermal insulation materials for
air conditioners, enjoyed a 46.41% jump in its net profit for the third
quarter ended Jan 31, 2016 (3QFY16) to RM4.3 million, from RM2.94
million a year ago, despite recording a forex loss (refer to other
income).The significant improvement was mainly due to increased efficiency leveraging on better machinery and higher volumes.
Total dividend at ALL TIME HIGH of 9 Sen per share for 9M FY16! EPS doubled to 16.32 Sen
The company has proposed a special dividend of four sen a share, which
will be traded ex on April 8, payable on May 3. This brings the current
financial year's dividend to nine sen a share.
For the first nine months of its financial year ending April 30, 2016
(9MFY16), Superlon's net profit doubled to RM12.96 million or 16.32 sen a
share versus RM53.64 million or 7.73 sen a share a year ago. Revenue
meanwhile grew by 24.55% to RM66.81 million, from RM53.64 million in
9MFY15.
Cash and equivalent ballooned to 37 Sen per share from 20 Sen per share in FY15
SUPERLON has a super-strong balance sheet with current ratio of 5
times! Cash and equivalent jumped to RM29.85 million from RM15.7 million
in FY15. Total borrowings were reduced to RM2.55 million from RM4.02
million.
Solid double-digit growth in revenue, profit and dividend since FY14
Concluding Remarks
SUPERLON is under the radar of all big research houses, causing the stock to be underpriced.
A final dividend of 4 Sen per share in 4Q FY16 will bring total dividend to 13 Sen per share or dividend yield to 6.3%.
If
you annualise the past 3 quarter EPS, you will arrive at EPS of 21.76
sen for FY2016. At current price of RM2.06, prospective PER is only 9.5
times. This valuation is low compared to other rubber-product stocks
where PER is 15 to 25 times.
If
you input a lower PER of 13 times, fair value is RM2.82, a huge 37%
upside! At RM2.82, prospective dividend yield is still high at 4.6%!
Investors started to accumulate the shares last week (refer chart)
Information
is for educational and informational purposes only and is not be
interpreted as financial advice. This does not represent a
recommendation to buy, sell, or hold any security. Please consult your
financial advisor.
SUPERLN (7235) - Superlon reported stellar results; cash per share leaped to 37 sen
http://klse.i3investor.com/blogs/Smallcapgem/93763.jsp
