Pan-International Electronics (Malaysia) Sdn Bhd (PIESB) was
established in 1989. Currently, PIESB principally provides integrated
'one-stop' CEM service for the computer, electronics and
telecommunication industries, including assembly of various cables.
When PIESB was first established, it started off with general PC
products such as keyboard cable assembly and serial mouse cable
assembly. Subsequently, it has expanded and moved on to network PC
products such as high precision network cable assembly, PC card assembly
and GSM cable assembly. The company then ventured into contract
electronic manufacturing for hand-held laser bar-code scanner devices.
Most of the sales are either directly or indirectly exported to the
overseas market, mainly to the USA, Europe and the Asia Pacific region.
The operations of PIESB are strategically located in Seberang Jaya Industrial Estate, with a workforce of around 700.
The operations of PIESB are strategically located in Seberang Jaya Industrial Estate, with a workforce of around 700.
WHY PIE?
According
to PIE group managing director Alvin Mui(pic), some of these projects
came to PIE as a result of the US-China trade war.
PIE
has confident to secure five electronic manufacturing projects that
would generate a collective revenue of more than RM50mil a year.
For the recently announced quarter, PIE recorded core net profit of RM16.8mil, which was 115% higher quarter-on-quarter (q-o-q).
Huge Quaterly sequential improvement from Q1 2019 to Q3 2019 as shown below
From current year prospect, we are expecting company will deliever even better Quarter result compare to current Q3
we see huge potential gain in PIE
We think that PIE will be able to achieve growth in the coming year due
to the improvement in operational efficiency while the company
continues to work with existing and new customers on projects to further
grow its topline. Valuation is considerably attractive at the moment,
which is lower than other EMS players that trade at 14x-16x. Moreover,
the company’s balance sheet remains heathy with a net cash of RM115.8m.
This will enable the continuation of its decent dividend yield that is
expected at 4.1%.
Based on FA and TA, we foreseen PIE has more than 100% potential gain or at least RM3
We
wish to tell you that we are holding PIE because last quarter result
is super good and from technical Analysis, We will buy more at RM1.6
BREAKOUT level !!
Disclaimer
At this point of time the writer has a position in P.I.E . This
article is purely meant for educational purposes only and it’s not
BUY/SELL recommendation. Please consult your remisier /dealer before
making any decision
https://klse.i3investor.com/blogs/PiePie/247812.jsp
https://klse.i3investor.com/blogs/PiePie/247812.jsp
