PETRONM (3042) - PETRONM: Bombastic Earning, Exceed My Forecast by 100% (2)
More than a month ago, I wrote an article about PETRONM with the title:
PETRONM: Growing Brand, Undervalue Stock
http://klse.i3investor.com/blogs/petronm_3042/
In fact, PETRONM is my joint-largest investment in my 2017 stock pick competition:
http://klse.i3investor.com/servlets/pfs/70717.jsp
In the first article, I forecasted the next quarter should be able to achieve around eps 20. Yesterday, the quarter result was out and their profit is eps 41. It exceeded my forecast by 100%. Although I know the company is growing but to achieve this fantastic result is extraordinary.
By looking at the quarter result review, the profit mainly because of growth in sales volume, better operating efficiency due to upgraded Port Diskson refinery and improvement in price between finished product and processed crude. With oil stabilise above $50 and finished product like retail petrol price, gasoline, jet fuel, and diesel are in uptrend in month of January and February, likely they will able to replicate this fantastic result if not better in next quarter result.
When they able to deliver eps 40 per quarter consistently, the market should rerating the share with PE 15 conservatively. Mind you PETDAG is trading at PE 25 now. With PE 15, PETRONM share price is already worth RM 24. Around 300% huge upside potential now. The management also generous and willing to share with small shareholders by proposing 22 cents dividend.
Trade at own risk,
Hopefully, AllWin
PETRONM (3042) - PETRONM: Bombastic Earning, Exceed My Forecast by 100% (2) - Author:AllWin
http://klse.i3investor.com/blogs/petron_3042_bombastic_earnings/116603.jsp
PETRONM: Growing Brand, Undervalue Stock
http://klse.i3investor.com/blogs/petronm_3042/
In fact, PETRONM is my joint-largest investment in my 2017 stock pick competition:
http://klse.i3investor.com/servlets/pfs/70717.jsp
In the first article, I forecasted the next quarter should be able to achieve around eps 20. Yesterday, the quarter result was out and their profit is eps 41. It exceeded my forecast by 100%. Although I know the company is growing but to achieve this fantastic result is extraordinary.
By looking at the quarter result review, the profit mainly because of growth in sales volume, better operating efficiency due to upgraded Port Diskson refinery and improvement in price between finished product and processed crude. With oil stabilise above $50 and finished product like retail petrol price, gasoline, jet fuel, and diesel are in uptrend in month of January and February, likely they will able to replicate this fantastic result if not better in next quarter result.
When they able to deliver eps 40 per quarter consistently, the market should rerating the share with PE 15 conservatively. Mind you PETDAG is trading at PE 25 now. With PE 15, PETRONM share price is already worth RM 24. Around 300% huge upside potential now. The management also generous and willing to share with small shareholders by proposing 22 cents dividend.
Trade at own risk,
Hopefully, AllWin
PETRONM (3042) - PETRONM: Bombastic Earning, Exceed My Forecast by 100% (2) - Author:AllWin
http://klse.i3investor.com/blogs/petron_3042_bombastic_earnings/116603.jsp
