1. 4Q14 EPS jumped 20% to 2.14 sen as net profit increased 28% YoY
to RM3.16m. The higher net profit is caused by better PBT margin at 6.0%
against 4Q13’s 2.4%. This should be caused by lower commodity prices globally
in the current quarter. As for full year, FY14
EPS gained 8% to 9.68 sen as revenue is up 24% to RM360m.
2.
Positive outlook for FY15 given the increase in
production line (confectionery segment). This should allow new business
opportunities to be secured.
3.
Book value increased to RM2.11 from RM2.10 on Jun-2013. Current
share price of RM0.845 means there is still 60% discount to the full book value
of RM2.11.
4.
Theoretical Fair Value of RM1.05
based on 10x FY15 Fwd. PE. Assuming LONBISC can deliver
same performance for FY15, its FY15 EPS should be 10.5 sen (+8% YoY). Based on
10x Fwd PE (similar to Small Cap PE), this stock is easily worth RM1.05 or 24%
upside from current price.
No comments:
Post a Comment