KIMHIN (5371) - KIMHIN - MONSTER ALIVE FROM EARTH
KIMHIN (5371) have come into our coverage after we monitor the price around RM 2.00 and its get our attention more now. We been mentioned this stock since last week 18/11/2015 in our telegram free groups, today close at RM 2.44.
After I mentioned this company, I quickly swim out from middle of the sea and go to visit this one of their factory past weekend.
(By looking at their company outlook, well maintain even the flower also nice, it's a sign they have lots of money to do maintenance, company are doing well)
KIM HIN INDUSTRY BERHAD, is a very old and strong company, its have been go through at least a few generation already. What business they do you should google yourself. I here to share something might cannot google out. And I believe it's time for KIMHIN to super shine once again. Lets look at the stock price:
In 90's, KIM HIN was a super expensive stock that value more than RM 10. From the chart I manage to get, the price show during 1995, it was trading at RM 18.00 !! Now you should know, how why I call this a Monster. And it's awake from the earth after long buried.
Why this Monster suddenly awake once again? This you must read a bit from this news yourself:
Kim Hin acquired United Kingdom-based Norcros Industry Pty Ltd, one of the major importers and distributors of Johnson Tiles in Australia, for some RM6.9mil last year.
Lets get back some picture for my visit first before I explain more detail why this Monster may worth a look seriously. Over the weekend, staff are still working, and do you see that, it's clay or soil that can turn into $$$$$$. Those are very low cost stuff and its locally available, and exported in USD when turn into beautiful MOSAIC ! Interesting !
Busy busy busy ! So many staff doing work in the weekend, many businesss??
I quick quick ask one of the staff, recently very busy ka? Weekend masih kerja. The staff just reply yah many kerja. Hahahahaha.. Thanks his hardworking contribution.
As the company’s Kuching plant consumes an average of 800 tonnes of LPG a month, he said the fuel price reduction would translate into savings of some RM10 million a year, thereby boosting its profit margin. The fuel expenditure made up about 35% of the plant’s operational costs. Save RM 10 Million = Earn extra RM 10 Million !! Equal to last quarter result RM 10 Million !! That is a big saving !
Talking about their doing export business, look like busy loading their stock up to container, good business yo? Let us have a quick testing, how much KIMHIN should worth :
By looking at latest 2 quarter result,
1st quarter RM 11 Million = EPS 7.86 CENT
2nd quarter RM 10.6 Million = EPS 7.18 CENT
3rd quarter (upcoming) RM 7 Mil = EPS 4.44 CENT
4th quarter (next coming) RM 7 Mil = EPS 4.44 CENT
(I put lower estimate for Third and Fourth quarter just to not too over positive let say a RM 7 Million is good enough:)
Total EPS = RM 0.2392 Cent. By PE 10 = RM 2.392 !! If PE 12 RM 2.87, If PE 15 RM 3.58.
This estimation are already put their result as low as RM 7 Mil, what if upcoming result got more than RM 10 Million???
Another things are their retain earning are very high ! Already can give 1:1 Bonus if the company want to !
As a conclusion after our visit and finding,
1. KIMHIN business back on track and expanding fast.
2. KIMHIN doing export business benefit if USD up.
3. Trading at low PE now but company growing.
4. Nett Cash Company, very low small debt, huge cash and other investment.
5. Fuel and gas price drop, help lower a lot cost.
6. I just brought RM 6k of their mosaic for house renovation.
7. Balance sheet show ready for BONUS issues ! Wish they give !
8. Major development are still in progress, mosaic are still major building material to be use.
My first TP RM 2.80, second TP RM 3.50, third TP RM 4.80 (pe 20), based on weaker result estimation.
If post better result, KIMHIN this monster will meletup kuat !!