PUC (0007) - PAY ATTENTION: IT IS WORTH TO GRAB NOW BEFORE TOO LATE!
ALL ON RIGHT PATH, SOLIDIFYING THE FUTURE
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PUC Founder has released its 4QFY16 results yesterday and it was awesome!!! Its
4QFY16 CORE earnings garnered four-fold higher than 4QFY15 and up
6%QoQ. Meanwhile, its revenue jumped 30%YoY and more than 80%QoQ.
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Advertising and media segment continued to perform very very well on the back of recovery in China's economy. This
will persist as ASEAN economic theme. All ASEAN countries pivoting to
China as the Country will be white knight to them after concerning on
U.S trade protectinism. Attention will be on China, the second largest
economic, to derive growth in asean.
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With reneweable energy started to kick in, it will also bode well for PUC founder' earnings from 1QFY17 and onwards. We will see major contributions from renewable energy segment from this year!
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To those who are new to PUC can follow previous stories here:
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Part 3 - https://klse.i3investor.com/blogs/tradingideas/115799.jsp
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Part 2 - https://klse.i3investor.com/blogs/tradingideas/113797.jsp
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Part 1 - https://klse.i3investor.com/blogs/tradingideas/113666.jsp
Source: Bursa
SEGMENTAL BREAKDOWN
Source: Internet
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What's next for the share price?
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SELL ON NEWS? No
way man... The stock has been undervalued for a long time. Still
trading below its book value of 16sen, which translating it into PBV of
0.6x ONLY.
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This year is the year for PUC Founder to shine!!!
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Book value will expand further as earnings will improve while PE ratio will be normalised.
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In
fact, why loss-making penny stocks can trade PBV of more than 1x. You
can check yourself. There are a lot out there trading above 1x PBV. PUC is also penny stock but profit making. So, why not for PUC to trade PBV of more than 1x.
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So, my estimated TP of 18sen (Upside 90%) is possible to be reached!!!
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There
are two more days left to climb for 18sen my estimated TP. It may or
may not reach by end of this February. But it is not a big problem. I am
sure it will reach there soon or later. Just a matter of timing.
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I believe it is still on the same catalysts that I have always been highlighting them in previous posts.
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The
company will be expecting to secure more solar projects that definitely
will expand its recurring income in the next quarters ahead.
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In recent development, DRB Hicom pulled out from JV with Malakoff for undertaking the construction and development of a 50-megawatt large-scale solar photovoltaic plant in Tanjung Malim, Perak.
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What IF PUC enter into an agreement with Malakoff for this project???
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This will be a MAJOR BOOST for PUC.
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Is that possible? Why not! The company already has track record. They just need to agree on certain terms and conditions that DRB Hicom failed to do so.
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But
if this were not to happen, there are a lot more solar projects to be
tendered out by Government by this year and in the pipeline.
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In
a nutshell, PUC Founder is on right path to solidify its future
earnings. TP of 18sen is just an estimated, it could be even higher than
this. I have forecasted it at around 24sen at least (Upside 150%)!
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Once
it reach RM250m market cap, it will be fall under Bursa scheme for
small cap research. This will be even a major CATALYST for PUC Founder.
It is not a dream but it is a real fact that people will uncover this
under the radar stock soon or later!
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I
just accumulated more this stock this morning after the results was in
line with what I have expected. So, average about 9.8sen now!
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We will see who will laugh later ;-)
PUC (0007) - PAY ATTENTION: IT IS WORTH TO GRAB NOW BEFORE TOO LATE!
https://klse.i3investor.com/blogs/tradingideas/116801.jsp
