Texchem is the parent company of Sushi King;operating chains of japanese fast food in Malaysia.
Sushi king has more than 55 outlets over Malaysia and it plans to open another 5 in the next two year. Given the fact that, it still has not penetrate the rural area, this means a huge opportunity of expansion in future. This food division contribute 7.2million net profit to the group yearly and in growing mode of 20%.
Nevertheless, the group also operating the Family Care Division: Fumakilla aerosol which is quite well known in Malaysia and have a history of more than decades. This division contributes 3.7million of net profit.
Industrial division registered a 15.2million profit while Packaging division registered profit of 5.7million.
Combining these four division would make a profit of 31.8 million. Based on closing price of Texchem at 93sen, the market value would be 124million and this make Texchem very attractive stock at PE of 4 times. Its NTA stands at RM1.33.
Given the fact that global economy is recovering, this will make Texchem benefiting from its recovery.
Texchem has a peak of RM2.10 two years ago and had bottoming at RM0.89 few months ago.Therefore, it is a safe bet for the stock at the moment.Long term buy is recommended with target price of RM1.60
Thursday, November 19, 2009
Maxis Listing
Long awaited Maxis listing in the Bursa Malaysia at last realized on today by closing at RM5.42, a premium of 42 sen versus its offering to institutional investor of RM5.00 and RM4.75 for retail buyers.
The success of the listing of Maxis will definately boost the malaysian stock market and based on maxis closing price today at RM5.42, it will be the 4th largest capital company in the malaysia stock market with market value over 40billion ringgit.
The ranking would be Sime, maybank, cimb followed by maxis. This signifies that maxis is the largest telco in Malaysia by far. This put Digi, Axiata far behind.
The dividend policy of maxis is 80% of profit. It is forecast that EPS would be 30sen, that means it would have 24 sen payout divedend which equal to 4.42% divedend yield which is better than bank's FD rate.
I recommend a long term buy for this stock, target price at RM6.00. This is based on divendend yield of 24 sen or 4%
The success of the listing of Maxis will definately boost the malaysian stock market and based on maxis closing price today at RM5.42, it will be the 4th largest capital company in the malaysia stock market with market value over 40billion ringgit.
The ranking would be Sime, maybank, cimb followed by maxis. This signifies that maxis is the largest telco in Malaysia by far. This put Digi, Axiata far behind.
The dividend policy of maxis is 80% of profit. It is forecast that EPS would be 30sen, that means it would have 24 sen payout divedend which equal to 4.42% divedend yield which is better than bank's FD rate.
I recommend a long term buy for this stock, target price at RM6.00. This is based on divendend yield of 24 sen or 4%
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