PRELIMINARY SCREENING OF COUNTERS WITH EPS 22 TO 26SEN

PRELIMINARY SCREENING OF COUNTERS WITH EPS 22 TO 26SEN

Below table show stock counters with EPS ~22-26sen, total 15 of them, at preliminary screening will be comparing indicators such as PE ratio, DPS and ROE, choose potential candidates worthy of further investigation. Target price is set at ~10x EPS as a rough guideline for reference. Give indicative scoring based on overall counter performance. The counters that scored 8 and above will be selected for second round screening and analysis. Review the list every 2-3months to select candidates with better performance. Current analysis results shows that PADINI and RCECAP are counters worth further investigation.

NO.	COMPANY NAME	CODE	CURRENT SHARE PRICE (RM)	VOL (00)	EPS (SEN)	NTA (RM)	DPS (SEN)	P/E RATIO	ROE (%)	DY (%)
1	PADINI	7052	3.78	2763	25.08	1	11.5	15.07	25.08	3.04
2	JAKS	4723	0.52	13943	24.78	1.4412	0	2.1	17.19	0
3	RCECAP	9296	1.61	433	25.73	1.6	8	6.26	16.08	4.97
4	KEN	7323	0.72	0	22.96	1.8	2.5	3.14	12.76	3.47
5	PHARMA	7081	2.75	210	22.93	2.01	20	11.99	11.41	7.27
6	ATLAN	7048	4.48	3	23.84	2.13	20	18.79	11.19	4.46
7	CMSB	2852	3.05	2260	25.54	2.3	8	11.94	11.1	2.62
8	OIB	5827	2.03	0	25.64	2.6	7	7.92	9.86	3.45
9	UOADEV	5200	2.34	2829	23.54	2.47	15	9.94	9.53	6.41
10	BIPORT	5032	4.41	0	22.46	2.6083	18	19.64	8.61	4.08
11	FAVCO	7229	2.47	142	24.18	3.01	13.5	10.22	8.03	5.47
12	LYSAGHT	9199	2.7	0	23.65	3.51	7	11.42	6.74	2.59
13	TGUAN	7034	2.38	200	22	3.51	8	10.82	6.27	3.36
14	SAB	5134	3.6	0	25.03	4.35	5	14.39	5.75	1.39
15	MISC	3816	6.7	15575	23.32	7.93	30	28.73	2.94	4.48

 Table 1: List of counters with EPS 22-26sen, with relevant indicators for comparison.

NO.	COMPANY NAME	CODE	REMARKS	TARGET PRICE (RM)	SCORE
1	PADINI	7052	-Last 5 years EPS on increasing trend, increased by 50.2% over last 5 years, PE ratio at 15, ROE 25%, and dividend yield 3.04%.	Around RM2.50	8
2	JAKS	4723	-Last 5 years EPS fluctuated significantly, from lowest point in 2017 to highest point of 24sen in 2018, PE ratio at 2.1, ROE 17%, and dividend yield 0%.	Below RM2.40	6
3	RCECAP	9296	-Last 5 years EPS on increasing trend, increased by 89.5% over last 5 years, PE ratio at 6.2, ROE 16%, and dividend yield 4.97%.	Below RM2.50	8
4	KEN	7323	-Last 5 years EPS on decreasing then increasing trend, overall increased by 23.5% over last 5 years, PE ratio is  low at 3.1, ROE 12%, and dividend yield 3.47%	Below RM2.20	7
5	PHARMA	7081	-Last 5 years EPS unstable and fluctuated significantly, from lowest point of 12 sen to highest point of 40sen, PE ratio at 11, ROE 11%, and dividend yield is attractive at 7.27%.	Around RM2.20	7
6	ATLAN	7048	-Last 5 years EPS unstable and fluctuated significantly, from lowest point of 13 sen to highest point of 23sen, PE ratio at 18, ROE 11%, and dividend yield is at 4.46%.	Around RM2.30	6
7	CMSB	2852	-Last 5 years EPS on decreasing trend, decreased by 73.2% over last 5 years, PE ratio is at 11, ROE 11%, and dividend yield 2.6%	Around RM2.50	5
8	OIB	5827	-Last 5 years EPS on increasing then decreasing trend, overall increased by 50.7% over last 5 years, PE ratio is at 7.9, ROE 9.8%, and dividend yield 3.45%	Below RM2.50	7
9	UOADEV	5200	-Last 5 years EPS on increasing then decreasing trend, overall increased by 6.4% over last 5 years, PE ratio is at 9.9, ROE 9.5%, and dividend yield 6.41%	Below RM2.30	7
10	BIPORT	5032	-Last 5 years EPS unstable and fluctuated significantly, from lowest point of 22sen to highest point of 34sen, PE ratio at 19, ROE 8.6%, and dividend yield is at 4.08%.	Around RM2.20	6
11	FAVCO	7229	subsidiary of muhibbah engineering '-Last 5 years EPS on decreasing trend, decreased by 64.6% over last 5 years, PE ratio is at 10, ROE 8%, and dividend yield 5.47%	Around RM2.40	5
12	LYSAGHT	9199	-Last 5 years EPS unstable and fluctuated significantly, from lowest point of 23sen to highest point of 48sen, PE ratio at 11, ROE 6.7%, and dividend yield is at 2.59%.	Around RM2.30	5
13	TGUAN	7034	-Last 5 years EPS unstable and fluctuated significantly, from lowest point of 17sen to highest point of 55sen, PE ratio at 10, ROE 6.2%, and dividend yield is at 3.36%.	Around RM2.20	5
14	SAB	5134	-Last 5 years EPS unstable and fluctuated significantly, from lowest point of 21sen to highest point of 32sen, PE ratio at 14, ROE 5.7%, and dividend yield is at 1.39%.	Around RM2.50	5
15	MISC	3816	subsidiary of PETRONAS '-Last 5 years EPS on increasing then decreasing trend, overall decreased by 124% over last 5 years, PE ratio is at 28, ROE 2.9%, and dividend yield 4.48%	Around RM2.30	5

Table 2: General comments on performance of each counter, with estimated target price and scoring.

CONCLUSION: Based on above analysis, the counters with overall good performance and increasing EPS in last few years are assigned with scoring 8 and above. These include PADINI and RCECAP. These counters will be selected for second round screening and analysis.

Below are the last 5 years EPS trend in table and graphic form.

LAST FIVE YEARS EPS (ROLLING QUARTERS)
NO.	COMPANY NAME	CODE	2014	2015	2016	2017	2018	%up or down
1	PADINI	7052	12.5	14.1	20.4	24.32	25.09	50.2
2	JAKS	4723	1.68	4.37	12.33	-1.23	28.18	94.0
3	RCECAP	9296	2.86	2.68	12.56	25.45	27.15	89.5
4	KEN	7323	18.77	14.74	14.58	23.35	24.55	23.5
5	PHARMA	7081	30.12	40.43	24.13	12.03	23	-31.0
6	ATLAN	7048	20.14	18.09	21.2	13.89	23.84	15.5
7	CMSB	2852	44.23	19.64	13.57	23.37	25.54	-73.2
8	OIB	5827	12.83	29.98	27.41	26.99	26.03	50.7
9	UOADEV	5200	23.21	27	28.65	39.28	24.81	6.4
10	BIPORT	5032	34.76	26.66	32.34	33.1	22.45	-54.8
11	FAVCO	7229	39.81	44.06	35.81	32.72	24.19	-64.6
12	LYSAGHT	9199	27	38.54	33.2	48.09	23.65	-14.2
13	TGUAN	7034	26.54	17.89	55.77	47.37	22.17	-19.7
14	SAB	5134	24.28	21.69	21.3	32.45	25.03	3.0
15	MISC	3816	52.2	59.9	62.9	54.7	23.3	-124.0

Table 3: Last 5 years EPS trend.

 

NOTES:

**DATA BASED ON ROLLING 4 QUARTERS AS OF 4/2/2019

VOL: VOLUME, EPS: EARNING PER SHARE, NTA: NET TANGIBLE ASSET PER SHARE, DPS: DIVIDEND PER SHARE,

P/E: PRICE EARNING RATIO, ROE: RETURN ON EQUITY, DY: DIVIDEND YIELD, TP: TARGET PRICE, FD: FIXED DEPOSIT

SCORE: HIGHEST 10, LOWEST 1, higher the score more worthy to consider invest in the counter

 

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