The Fundamental of POHKONG:
Current PE: 5.62 (low)
Current Ratio: 2.95 (Good)
NTA: 1.38 (against current share price 48) SUPER Undervalue
Cash on hand: 22.77million
Current Assets: 653.13 million
Current Liabilities: 221.14million
Healthy finnacial : As current asset > current liabilitise
Shareholder fund: 564.52 million
The company have the very strong profit since 2016. Last 3 QR report was very impressive which achieve RM 10.5million (31/7/2019),
RM 8 million (31/10/2019) and RM 10.6 million (31/01/2020).
The group financial report for 31/01/2020 increased 57% YOY mainly due to the Sharp increase of Gold price. FYI: The gold price in Jan 2020 is stood at US 1,556.42 per Ounce. As the gold price rally in Jan 2020, the share price of Pohkong had also rally to the higher price at 70.5 sen. This is still very far from the NTA of 1.38
Rumour had been around all the time for Pohkong as the company had the healthy financial result the share had been undervalue for years.
Current Gold price:
Due to the Covid 19 pandemic and world's economy is uncertainty, people have divert their investment from equities to GOLD.
The gold price on today is nearly USD 1,750 per Ounce. The gold price had been increase more than 15 % compare with Jan 2020.
SO, What will be impact of gold price increase against POHKONG?
When gold price US 1556.42 per Ounce, the Share price of POHKONG increase up to 70.5sen
When Gold price US 1750 per Ounce, the share price of POHKONG only Left 48sen??? is that justify??
This make the company share is more n more undervalue and high target for privatise.
sources: London Metal exchange, the edgemarket and Nanyang Sia pau