In order for a company to be good, the
management play an important part in the company direction, visionary,
able to forecast and make critical decision.
For that, I can sense that the mangement of ChooBee Metal Industries Berhad having such quality.
Even though the metal/steel industry had
been going through negative headwind, but the company is able to
deliver result, and putting the company into zero debt in such
challenging environment. Some other steel manufacturer have wild
swinging result that can see their profit going high positive for a
quarter, and deep negative for another quarter.
But Choobee had proven it's result by delivering a consistent result for the past 3 quarters.
As you can see in here again, 3 quarters
cumulative earning is 23 cents per share. That is very commendable for a
mid size company like Choobee. And to be honest, you will not be seeing
steel company giving handsome dividend. This is rare case for Choobee
as I believe the management is really caring for the shareholder.
The reason Choobee share price is
depressed despite performing in a good manner is due to an overall
sector outlook that pull Choobee into the flock, as investor shun the
metal/steel industry. This result Choobee trading at an attractive
single digit PER of 5.5 to 6.
However, 2019 should be good for Choobee as the current government is actively seeking to reduce NRW (Non revenue water).
So now steel pipe manufacturer such as Choobee should be able to see revenue starting to grow again in 2019.
An excerpt taken from the previous
quarter result note, the management also highlight on future success
depend more on water pipes replacement projects.
Now there are even news that ECRL will continue back at a smaller scale, which benefit steel makers in Malaysia.
So I am just sharing on good news of
Choobee which is really undervalue at this point of time. The coming
financial result is just around the corner. Good or bad I really don't
know, but based on historical performance and management quality and
foresight, I think Choobee still can continue on with it's earning.
I think Choobee should be able to trade
past RM 2.00. The only thing bad is it's lack of liquidity. But this is
probably due to the current share price is not reflecting the real value
of Choobee, hence the lack of liquidity. Other than that, this can be a
good stock at this price for now.
This is not a recommendation for you to
buy sell or trade Choobee. Just an informational article for you to do
more study before doing any decision.
https://klse.i3investor.com/blogs/targetinvest/194141.jsp
