PLABS - 7 FUNDAMENTAL POINTS YOU SHOULD KNOW
PLABS rebounded from its uptrend support yesterday and entered our radar.
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On July 22 2020, PLABS ventures into consumer goods distribution by acquiring 60% Thye On Tong Trading Sdn Bhd (TOT).
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TOT has been involved in the business of distribution of consumer goods for more than 30 years.
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TOT distributes consumer defensive consumer defensive goods including oral care, homecare and baby care products.
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TOT's clients include Mr DIY, NSK Group, KK Mart, The Store, Billion Shopping Centre and Alpro Pharmacy.
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PLABS acquired 60% TOT at a “willing-buyer-willing-seller” basis,
based on a PER of 5 times and a GUARANTEED PROFIT of RM2.25 million per
annum.
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60% of guaranteed profit, RM1.35 million will go to PLABS. Adding that
to PLABS’ core profit of RM4.1 million, PLABS could make a total profit
of around RM5.5 million in the next 12 months after acquisition.
- At a share price of 24.5 sen, PLABS is being traded at a 1-year forward PER of about 10.5 times.
DISCLAIMER
Our study notes are for sharing purpose only. There is no BUY/SELL recommendation.
https://klse.i3investor.com/blogs/jomnterry/2020-10-20-story-h1534734071-PLABS_7_FUNDAMENTAL_POINTS_YOU_SHOULD_KNOW.jsp
https://klse.i3investor.com/blogs/jomnterry/2020-10-20-story-h1534734071-PLABS_7_FUNDAMENTAL_POINTS_YOU_SHOULD_KNOW.jsp