I've come across that the prominent investor Mr Koon Yew Yin is actively looking for investment ideas. In this article, I will not only share with you on how it has fulfilled ALL your stock selection criteria, but also some facts for you to digest. I will be writting down some facts but not opinion - to avoid any bias opinion in this write up.
Who is MTAG Group Berhad?
Answer: Label Printing and Material Converting Expert
Basic Info of MTAG:-
Current Price as of 17 October 2019 of MTAG: RM0.485 (below IPO Price of RM0.53)
P/E Ratio: 7X
ROE: 36%
To know more about what the Company is doing, please visit its website at https://mtaggroup.com/
Investment Criteria by Mr Koon:-
1. The company must report increasing profit for 2 consecutive quarters and its projected PE must be less than 10.
MTAG's financials:
Profit After Tax in FY2016: RM15.9 million
Profit After Tax in FY2017: RM22.6 million (+42% yoy)
Profit After Tax in FY2018: RM47.5 million (+110% yoy)
As MTAG is a newly listed company in KLSE, therefore, there was only one quarterly result which is available in Bursa. By looking at the financials above, it has shown an exponential growth of profit.
PE Ratio: Market Cap / PAT FY2019 = RM331 / RM47.5 = PER 7X now which is below your PE 10. However, the projected 1-year PER would be even lower should it continues to grow its profits.
Prospect of MTAG
First, we need to find out who are the main customers of MTAG. Four out of its five major customers are listed entities, namely, SKPRES, VS and ATAIMS and Venture Corp (listed in SGX). In order for MTAG to do well, its customers must do well. Let's see how's the share price performances of MTAG's customers:-
VS's Share Price Performance
ATAIMS's Share Price Performance
SKPRES's Share Price Performance
The share prices of MTAG's customers are on a strong uptrend, which hinting the business would be good. Hence, the business for MTAG is likely to be good. Should the share price goes on an up-trend just like its customers?
Pictures Speak Louder than Words
Last but not least, the current market cap of MTAG is about RM331 million. And the LIQUIDITY of this share is high, where you would not have any worry about liquidiity problem for both selling and buying. For example, today, the number of shares traded are more than 30 million shares, valued at more than RM15 million at current share price of RM0.485.
Disclaimer:
This is not a buy/sell call and you need to do your own homework to decide whether it is a good investment. For an undervalued stock with strong growth prospect, it shall go up with/without any presence of seasoned investors. Thank you.
Who is MTAG Group Berhad?
Answer: Label Printing and Material Converting Expert
Basic Info of MTAG:-
Current Price as of 17 October 2019 of MTAG: RM0.485 (below IPO Price of RM0.53)
P/E Ratio: 7X
ROE: 36%
To know more about what the Company is doing, please visit its website at https://mtaggroup.com/
Investment Criteria by Mr Koon:-
1. The company must report increasing profit for 2 consecutive quarters and its projected PE must be less than 10.
MTAG's financials:
Profit After Tax in FY2016: RM15.9 million
Profit After Tax in FY2017: RM22.6 million (+42% yoy)
Profit After Tax in FY2018: RM47.5 million (+110% yoy)
As MTAG is a newly listed company in KLSE, therefore, there was only one quarterly result which is available in Bursa. By looking at the financials above, it has shown an exponential growth of profit.
PE Ratio: Market Cap / PAT FY2019 = RM331 / RM47.5 = PER 7X now which is below your PE 10. However, the projected 1-year PER would be even lower should it continues to grow its profits.
Prospect of MTAG
First, we need to find out who are the main customers of MTAG. Four out of its five major customers are listed entities, namely, SKPRES, VS and ATAIMS and Venture Corp (listed in SGX). In order for MTAG to do well, its customers must do well. Let's see how's the share price performances of MTAG's customers:-
VS's Share Price Performance
ATAIMS's Share Price Performance
SKPRES's Share Price Performance
The share prices of MTAG's customers are on a strong uptrend, which hinting the business would be good. Hence, the business for MTAG is likely to be good. Should the share price goes on an up-trend just like its customers?
Pictures Speak Louder than Words
Last but not least, the current market cap of MTAG is about RM331 million. And the LIQUIDITY of this share is high, where you would not have any worry about liquidiity problem for both selling and buying. For example, today, the number of shares traded are more than 30 million shares, valued at more than RM15 million at current share price of RM0.485.
Disclaimer:
This is not a buy/sell call and you need to do your own homework to decide whether it is a good investment. For an undervalued stock with strong growth prospect, it shall go up with/without any presence of seasoned investors. Thank you.
https://klse.i3investor.com/blogs/mtag/230702.jsp
