PRELIMINARY SCREENING OF COUNTERS WITH EPS 26 TO 30SEN

PRELIMINARY SCREENING OF COUNTERS WITH EPS 26 TO 30SEN

Below table show stock counters with EPS ~26-30sen, 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.

NO.	COMPANY NAME	CODE	CURRENT SHARE PRICE (RM)	VOL (00)	EPS (SEN)	NTA (RM)	DPS (SEN)	P/E RATIO	ROE (%)	DY (%)
1	MAXIS	6012	5.79	19469	26.52	0.93	20	21.83	28.52	3.45
2	AMWAY	6351	5.8	58	28.02	1.23	27.5	20.7	22.78	4.74
3	MATRIX	5236	1.97	5834	28.9	1.68	13.4	6.82	17.2	6.8
4	LIIHEN	7089	2.78	223	28.7	1.64	20.5	9.68	17.51	7.37
5	BURSA	1818	7.32	2826	28.17	0.98	34.33	25.99	28.74	4.69
6	MUHIBAH	5703	3	12606	29.66	2.33	7	10.11	12.73	2.33
7	HONG LEONG CAPITAL	5274	9.6	0	28.71	3.29	19	33.44	8.73	1.98
8	ASIAFLE	7129	2.63	0	27.6	3.0581	15	9.53	9.03	5.7
9	MUDA	3883	1.94	2448	28.93	3.29	3.5	6.71	8.79	1.8
10	MEGA FIRST	3069	3.55	1176	28.65	3.44	4	12.39	8.33	1.13
11	SHL	6017	2.34	10	28.8	3.32	16	8.13	8.67	6.84
12	GOLDIS	5606	2.5	500	29.52	4.8944	2	8.47	6.03	0.8
13	CANONE	5105	2.78	3541	26.64	4.2719	4	10.43	6.24	1.44
14	AFFIN	5185	2.23	988	26.63	4.3137	4.9	8.37	6.17	2.2
15	NSOP	2038	3.2	20	28.05	8.04	8	11.41	3.49	2.5

 Table 1: List of counters with EPS 26-30sen, with relevant indicators for comparison.

NO.	COMPANY NAME	CODE	REMARKS	TARGET PRICE (RM)	SCORE
1	MAXIS	6012	-Last 5 years EPS on increasing trend, increased by 16.5% over last 5 years, PE ratio is high at 21.83, ROE 28.52%, and dividend yield 3.45%.	Around RM3.80	8
2	AMWAY	6351	-Last 5 years EPS on decreasing trend, decreased by 129.2% over last 5 years, PE ratio is high at 20, ROE 22%, and dividend yield 4.74%	Around RM2.80	6
3	MATRIX	5236	-Last 5 years EPS on decreasing trend, decreased by 74.5% over last 5 years, PE ratio is low at 6.8, ROE 17%, and dividend yield 6.8%	Below RM2.80	6
4	LIIHEN	7089	-Last 5 years EPS on decreasing trend, decreased by 41.2% over last 5 years, PE ratio is at 9.6, ROE 17%, and dividend yield 7.37%	Below RM2.80	6
5	BURSA	1818	-Last 5 years EPS on increasing then decreasing trend, overall decreased by 6.6% over last 5 years, PE ratio is  high at 25, ROE 28%, and dividend yield 4.69%	Around RM2.80	7
6	MUHIBAH	5703	-Last 5 years EPS on increasing trend, increased by 31.7% over last 5 years, PE ratio is reasonable at 10, ROE 12%, and dividend yield 2.33%.	Around RM2.90	8
7	HONG LEONG CAPITAL	5274	-Last 5 years EPS on decreasing then increasing trend, overall decreased by 51.4% over last 5 years, PE ratio is  high at 33, ROE 8.7%, and dividend yield 1.98%	Around RM2.80	6
8	ASIAFLE	7129	-Last 5 years EPS on decreasing trend, decreased by 72.5% over last 5 years, PE ratio is at 9.5, ROE 9%, and dividend yield 5.7%	Below RM2.70	6
9	MUDA	3883	-Last 5 years EPS on decreasing then increasing trend, overall increased by 68.1% over last 5 years, PE ratio is  low at 6.7, ROE 8.7%, and dividend yield 1.8%	Below RM2.80	8
10	MEGA FIRST	3069	-Last 5 years EPS on increasing then decreasing trend, overall increased by 0.7% only over last 5 years, PE ratio is at 12, ROE 8.3%, and dividend yield 1.13%	Around RM2.80	6
11	SHL	6017	-Last 5 years EPS on increasing then decreasing trend, overall increased by 1.6% only over last 5 years, PE ratio is at 8, ROE 8.6%, and dividend yield 6.84%	Below RM2.80	7
12	GOLDIS	5606	WASTEWATER TREATMENT -Last 5 years EPS on steadily increasing trend, increased by 63.8% over last 5 years, PE ratio is reasonable at 8.4, ROE 6%, and dividend yield 0.8%.	Below RM2.90	9
13	CANONE	5105	-Last 5 years EPS on increasing then decreasing trend, overall decreased by 26.3% over last 5 years, PE ratio is at 10, ROE 6.2%, and dividend yield 1.44%	Around RM2.60	6
14	AFFIN	5185	-Last 5 years EPS on decreasing then increasing trend, overall decreased by 28.2% over last 5 years, PE ratio is  low at 8.3, ROE 6.1%, and dividend yield 2.2%	Below RM2.60	7
15	NSOP	2038	-Last 5 years EPS on decreasing then increasing trend, overall increased by 8.1% over last 5 years, PE ratio is at 11, ROE 3.4%, and dividend yield 2.5%	Around RM2.80	8

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 MAXIS, MUHIBAH, MUDA, GOLDIS and NSOP. 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	MAXIS	6012	22.2	21.5	26.3	28.1	26.6	16.5
2	AMWAY	6351	64.19	49.93	29.34	30.83	28.01	-129.2
3	MATRIX	5236	50.8	50	32.7	32.13	29.11	-74.5
4	LIIHEN	7089	40.53	61.45	40.3	43.74	28.71	-41.2
5	BURSA	1818	33.7	37.7	36.2	40.7	31.6	-6.6
6	MUHIBAH	5703	20.37	18.89	19.2	26.54	29.84	31.7
7	HONG LEONG CAPITAL	5274	47.24	30.49	27.55	32.72	31.21	-51.4
8	ASIAFLE	7129	47.63	38.19	30.41	32.15	27.61	-72.5
9	MUDA	3883	9.22	6.72	3.52	13.34	28.93	68.1
10	MEGA FIRST	3069	30.43	34.63	34.99	40.61	30.64	0.7
11	SHL	6017	28.33	43.54	34.18	33.38	28.8	1.6
12	GOLDIS	5606	11.53	20.76	29.12	28.2	31.89	63.8
13	CANONE	5105	33.67	56.31	39.3	36.85	26.65	-26.3
14	AFFIN	5185	35.57	24.73	25.22	26.42	27.74	-28.2
15	NSOP	2038	25.78	-6.05	5.1	14.97	28.04	8.1

Table 3: Last 5 years EPS trend.

 

NOTES:

**DATA BASED ON ROLLING 4 QUARTERS AS OF 27/1/2019

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

 

Disclaimer: The content of the blog posts are for sharing purpose only. Readers are encouraged to carry out further research and analysis as well as follow up latest update information before making any investment decisions.

 

 

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