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Saturday, April 8, 2017

Prolexus Bhd



Prolexus Bhd
Share price RM1.47
Trailing 12 months (TTM)
P/E ratio: 9.54x
Dividend yield 2%

Actually wanted to post on Thursday night but I saw there is a big block of seller at RM1.45 and price dropped to RM1.41, so no urgency because i only completed 90% of my writing. But Friday suddenly it cleared the RM1.45. So fast fast post in my facebook this afternoon saying tonight will post on this. Afraid people want to goreng.

Merits
PE Ratio not too expensive.
Strengthening of USD.
It was in Fong Siling’s 30 recommended stocks end of 2016.
In sifu ICON’s comment….. Anyway, my interest in this topic is limited to apparel, furnitures and cling wraps because I have Poh huat, latitude, Prolexus, thong guan, etc. Wake me up when SoftBank starts making those products in US. Zzzzz
Recommended Buy by AMMB with Target Price of RM1.61 (March 28, RM1.36). Maintain BUY: Relatively stable margins seen for Prolexus for remainder of FY17. Maintain buy with a lower fair value of RM1.61: While we believe Prolexus Bhd deserves to trade at a premium to its three-year average price-earnings ratio (PER) of 8.2 times, we lower the PER peg to reflect Prolexus’ moderated growth outlook. Valuations are rolled over to financial year 2018 forecast (FY18F), from FY17F, as we lower our PER peg to 10 times from 12 times.
Yesterday the warrant up 7% but the mother dropped by RM0.01. People may got some good news and buy the warrant first. Not sure.
Saw a comment from someone that Nike reporting good sales......
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Yipman Wow.. Excellent growth of NIKE. QoQ and EPS keep on increasing.
 Does this reflect PRLEXUS coming result?
I trust the data below will prove it to you.
NIKE, INC. REPORTS FISCAL 2017 THIRD QUARTER RESULTS
• Revenues up 5 percent to $8.4 billion; 7 percent growth on a currency-neutral basis*
• Diluted earnings per share up 24 percent to $0.68
• Inventories up 7 percent as of February 28, 2017
NIKE, INC. REPORTS FISCAL 2017 SECOND QUARTER RESULTS
• Revenues up 6 percent to $8.2 billion; 8 percent growth on a currency neutral basis*
• Diluted earnings per share up 11 percent to $0.50 compared to prior year
 • Inventories up 9 percent as of November 30, 2016 ........
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As mentioned in my blog earlier, they have this two new plant/mills commencement in 2017 in Johor and Vietnam and joint-venture with Taiwan company. This will add in additional profits for them.
If they can increase some profits, add in the contribution from new plant/mill and Taiwan joint venture, the prospect should be bright.
Many of the stocks have gone up crazily in the past few months, but Prolexus not yet move (belum jalan lagi). Any down turn in the market, this may not drop so much if not much change to their profits.
Demerits
PE Ratio is not very cheap, with potential warrant dilution of 31%.
Latest quarter result not so good, and may be a sign of slowing.
This year no major sport events like Olympics, World Cup or European Cup to boost their sales.
Have a nice weekend.

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Dollar Cost Averaging and PEGGY Method. Sharing info on cheap (low PE) company with high growth, low Gearing or Net Cash and High Dividend Yield.

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