FIMACOR (3107) - Collect while still low

Fima Corporation Berhad ("FimaCorp") is an investment holding company with subsidiaries principally involved in the manufacturing, plantation and property management.
  • Manufacturing
    Production and trading of security and confidential documents
The manufacturing division namely production and trading of security and confidential documents is under the wings of wholly-owned subsidiaries Percetakan Keselamatan Nasional Sdn Bhd (“PKN”) and Security Printers (M) Sdn Bhd.
PKN was established in 1983 as Cawangan Percetakan Keselamatan under the National Printing Department and was privatized by FimaCorp in 1990.  The Company is one of the largest domestic security printers in Malaysia, offering a wide range of products and services which include travel documents, licenses and other security & confidential documents for the local and overseas market.  
Its factory in Jalan Chan Sow Lin, Kuala Lumpur is located in a fully secured compound with restricted access and personnel movement, CCTV monitoring, physical checks and strong rooms. PKN prides itself in having state-of-the-art security printing logistics in sustaining key capabilities, particularly in the area of high quality printing and innovative design. PKN has more than twenty printing machines which has the most comprehensive range of printing technologies particularly letterpress, offset, flexography, screen and intaglio.
In 1990, Percetakan Keselamatan Nasional integrated with Security Printers (M) Sdn Bhd making it a trading arm for security documents.
FimaCorp Group is engaged in the development, cultivation and management of oil palm estate as well as the processing of oil palm products. As at 31 March 2015, the Group owns and operates 9 estates with a total landbank of 23,414.0 hectares.

The property management division offers property management, cleaning, mechanical and electrical services to compliment the various companies in FimaCorp and Kumpulan Fima Berhad group of companies.

Company Earning,

Company full year earning at 2015 is 21.24sen per share which is PE 10.49 for current price Rm2.23
Company consistently paying dividend twice a year with total dividend of 12.5sen in the past two years. In the latest quarterly report earning, the company also recommend payment of a single tier dividend of 7.5sen.

Table below are the details for the company dividend and bonus issue history,

Balance sheet,

From the balance sheet above, we can see that company only having Rm491,000 short term loan with net cash of Rm172.64mil at March 2015. I believe with the strong cash on hand, company can continue pay total dividend of 12.5sen same as past two years.

Recently company also starting to buy back the shares,
From the chart above, the share price was all the way still below the down trending line but seem like supported at Rm2.18 and with the recently company share buy back at Rm2.22 i believe share price will supported around this level. Is good to collect the counter during this side way period while waiting for the dividend.
Current price - Rm2.23
Dividend Yield- 5.6%

My Target Price - Rm2.80
Happy Trading!
Nick Loke
FIMACOR (3107) - Collect while still low