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P.I.E - PRICE IS ESCALATING!!


BUSINESS HIGHLIGHTS:

  • P.I.E main business segments are manufacturing segments, trading segment & others.
     
  • Manufacturing segments comprised of EMS activities, raw cable & wire and wire harness.
     
  • EMS activities contributes almost 83.6% of overall company revenue.
     
  • Strong revenue growth of EMS activities compared to previous quarter, improvement of 27%.
     

FINANCIAL STRENGTH:

  • P.I.E is a net cash company with cash+ short-term deposits of 155.7million.
     
  • Current ratio of 2.4, whereby the company is able to pay back all the short term liabilities.
     

GROWTH CATALYST & FUTURE PROSPECT:

  • EMS activities (78%) orders are expected to increase in the long run from existing customers. Therefore, no disruption of supply issue.
     
  • Beneficial effect of USA-China trade war, receive more orders from new overseas customers.
     

RISKS:

  • Global spread of COVID-19, P.I.E will face production and shipment issue.
     
  • Fluctuation of Ringgit Malaysia against USD.
     
  • Political uncertainties in Malaysia will create panic selling.
     
  • Coming US presidential election will create short term ad hoc to the market.
     

VALUATION:

  • P.I.E is trading at P/E 27.9X.
     
  • EMS competitors such as VS & ATAIMS are trading at P/E of 38X. SKP at P/E 35X.
     
  • Conservatively, assume P.I.E fair valuation at P/E of 35X, the share price is worth RM2.30. (24% upside)
     

TECHNICAL VIEW:

  • Cup and handle pattern formed & break through the recent resistance of RM1.75 with big volume. 
     
  • First support: RM1.75, second support: RM1.63.
     
  • First resistance: RM2.00, second resistance: RM2.20.

JOIN US NOW: https://t.me/Jwolfinvest

Disclamer: Nothing contained in this article should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit.


 https://klse.i3investor.com/blogs/Wolf/2020-10-29-story-h1535535636-P_I_E_7095_PRICE_IS_ESCALATING.jsp

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