1. Strong Results, Very Satisfactory
JHM released its March 2016 results today. Please refer to table below :-
I am very pleased with this latest quarter result. Revenue has been growing for 5 consecutive quarters. The group's restructuring effort is clearly paying off.
Net profit came in at RM2.8 mil. However, this includes net forex loss of RM1.3 mil. Without exceptional items, core net profit would be RM3.7 mil, translating into EPS of 3 sen.
Based on latest price of 72 sen and annualised EPS of 12 sen, the stock is currently trading at prospective PER of 6 times.
However, their latest earning is not the main reason I mention "potentially 100% upside". It is their future plans that are exciting.
2. Future Plans
Please refer to the following article dated 27 May 2016 for further details :-
As per the article above, JHM's Managing Director mentioned that the group targets to achieve RM20 mil PAT within 3 to 5 years.
Based on 144 mil shares (post special issue, which is still pending completion), EPS will be approximately 14 sen. Based on 10 times PE multiple, target price of RM1.40 (100% gain from current price of 72 sen) ?
3. Concluding Remarks
I usually don't take PLC's earnings projection seriously, especially if it involves going many years into the future. However, in JHM's case, I believe there is some credibility :-
(a) JHM is in the right sector. Among all the listed LED companies in Bursa, it is the only one involved in High Brightness LED. As pointed out in my previous articles, this particular segment is expected to perform well all the way until 2020; and
(b) JHM has a solid track record of delivering what it promises. It has been able to grow its revenue and earnings for 5 consecutive quarters.
I actually sold the stock this morning at 69 sen. However, upon seeing its result during lunch time, I decided to buy back at 71 sen. I think there is further upside for this stock. It is worth taking a bet.
JHM (0127) - (Icon) JHM Consolidation (5) - Earnings At All Time High. Potential Upside of 100% ?
http://klse.i3investor.com/blogs/icon8888/97524.jsp
JHM released its March 2016 results today. Please refer to table below :-
I am very pleased with this latest quarter result. Revenue has been growing for 5 consecutive quarters. The group's restructuring effort is clearly paying off.
Net profit came in at RM2.8 mil. However, this includes net forex loss of RM1.3 mil. Without exceptional items, core net profit would be RM3.7 mil, translating into EPS of 3 sen.
Based on latest price of 72 sen and annualised EPS of 12 sen, the stock is currently trading at prospective PER of 6 times.
However, their latest earning is not the main reason I mention "potentially 100% upside". It is their future plans that are exciting.
2. Future Plans
Please refer to the following article dated 27 May 2016 for further details :-
As per the article above, JHM's Managing Director mentioned that the group targets to achieve RM20 mil PAT within 3 to 5 years.
Based on 144 mil shares (post special issue, which is still pending completion), EPS will be approximately 14 sen. Based on 10 times PE multiple, target price of RM1.40 (100% gain from current price of 72 sen) ?
3. Concluding Remarks
I usually don't take PLC's earnings projection seriously, especially if it involves going many years into the future. However, in JHM's case, I believe there is some credibility :-
(a) JHM is in the right sector. Among all the listed LED companies in Bursa, it is the only one involved in High Brightness LED. As pointed out in my previous articles, this particular segment is expected to perform well all the way until 2020; and
(b) JHM has a solid track record of delivering what it promises. It has been able to grow its revenue and earnings for 5 consecutive quarters.
I actually sold the stock this morning at 69 sen. However, upon seeing its result during lunch time, I decided to buy back at 71 sen. I think there is further upside for this stock. It is worth taking a bet.
JHM (0127) - (Icon) JHM Consolidation (5) - Earnings At All Time High. Potential Upside of 100% ?
http://klse.i3investor.com/blogs/icon8888/97524.jsp
