ASTINO (7162) - If Astino is not your taste, then there is nothing left for you
Recently, there are a lot of my reader who are eager to see what is my next "Da Vinci Code". It is always a rewarding journey to be able to crack some market codes that could potentially comes with some handy gains, but of course, with a handy amount of risk as well.
But today, I am not going to crack mind blowing puzzle or codes with you. What I am going to introduce to you is to crack open your mind in order to look at this explicitly beautiful, full of potential, standing on solid fundamental and yet - still being in a cheap valuation.
So how cheap is cheap? If a company is valued at PER x 10 at it's full year earning, I think it is fairly valued already, and anything higher will need to be supported with a well projected growth plan in hand.
So if your attention is captured from the title onward, you will know that the company that I want to introduce to you is definitely - Astino Berhad (Astino - 7162)
So how cheap is Astino ?
We will look at the FYE 2016 result to do a benchmark,
As you can see, despite the volatile business market, Astino had managed to garner an earning of 11.08 cents from business activities (Not those revalue land and recognize as earning).
As of today, the closing price of RM 0.72 is reflecting that Astino is only trading at a PER of x 6.5 !!! Yes, you did not get me wrong, it is at PER of x 6.5 !!! 3-4 years ago, there are plenty of companies that can be easily be trading at this valuation, but this had not been the case recently because most of the company already saw much capital appreciation prior to the 2014 bull market. I really don't know if you can find another company with such solid fundamental trading at this kind of attractive PE or not.
Based on the current state of global economy which is flushed with cash from massive quantitative easing and bond buying activities, Astino can be easily valued with PER x 10, which ultimately gives them a good valuation at RM 1.10, based on FYE 2016 results.
As I had mentioned before on Astino on 19th July 2016 (Astino - Blue Ocean Steel Player), it was trading at RM 0.71 then. Now that Astino fundamental is still intact, debt has seen reduction, and Astino is back to the lucratively attractive price yet again in 2017.
According to the technical chart, Astino indeed saw a price break out from the downtrend line, which is highlighted in red. Prior before the break out, Astino had a healthy consolidation at the range of RM 0.70.
To add on, there had been multiple share buy back into treasury last year which is above the price of RM 0.75, and even the major shareholder Mr Ng Back Teng proceeded into buying some shares from the open market at the price of RM 0.79 in 2016.
Now, the top management had decided to reward shareholder with 1 cents dividend as well, which is a bonus to say, as the management had earlier wanted to reinvest into the expansion plan of the company.
So, if you still do not know what is the businesses of Astino, I would recommend you to better buck up and read it up before it goes out of your grasp again. Here are some of the references that you can refer to
1. Astino to market agro-house products in Vietnam and Indonesia
2. Astino to gain from housing revival plans
3. Astino Home Page
Still not convinced about Astino ?
I know you will definitely have some handbrakes and doubts reserved in your decision.
If that is so, I will need to use some of my analytical skills to analyze and share with you what is the next game changer of Astino in my next chapter. Next chapter again!? Yeah, because that is another tons of information for you to digest.
For this chapter, I want you to open up your mind on this counter that is trading at PER x 6.5. Until your mind is totally opened up, then only you can receive the next batch of even interesting development from Astino, which had to do with it's strategic land banks, where business man will definitely drool over it.
So again, you have to make your decision again. With or without you, Astino will going to flourish.
ASTINO (7162) - If Astino is not your taste, then there is nothing left for you
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