FIGURE 1: XOX BERHAD LAST 2
YEARS SHARE PRICE TREND
**analysis
based on 2018 annual report.
1.
GENERAL INTRO: XOX is one of the major mobile
network providers in Malaysia.
2.
NOTABLE POINTS:
a. in
2018 report, XOX claims to be the first Mobile Virtual Network Operator
(“MVNO”) listed on Bursa Malaysia, currently reported to have around 2 million
customers
b. reported
RM 6 million losses before tax in 2018 financial year was attributed to the
intense price-focused competition resulted in lower margin, and higher spending
on promotional activity in enhancing customer services and branding
3.
IS THIS COUNTER A STRONG GROWTH STOCK?
a. REVENUE
RANGE (million): ~200.9 million in 2018 annual report, this is a low revenue
company.
b. SHARE
PRICE: from 2018-2019, share price is decreasing from around RM0.10 to around
RM0.05
c. EARNING
PER SHARE (EPS): earning per share in last 5 years decreased from -0.4 to -0.67sen.
d. FUTURE
POTENTIAL/PROSPECTS: quite dependable and reliable counter, share price expected
to be stable.
e. CAPITAL
EXPENDITURE (CAPEX): spending on purchase of new fixed assets is RM 20 million,
around 12% of total assets.
4.
IS THIS A STRONG DIVIDEND STOCK?
a. DIVIDEND
YIELD: in 2018 report, XOX did not declared dividend payout to shareholders.
b. CONSISTENCY:
not consistent dividend payout, there were no dividend payouts in last five
years (2015-2019).
c. DIVIDEND
PAYOUT RATIO: N/A
5.
IS THE MANAGEMENT PERFORMANCE GOOD?
a. RETURN
ON EQUITY (ROE): in 2018 financial year, XOX achieved a very poor return of
shareholders’ equity, at -23%, due to its reported losses.
b. COST-TO-INCOME
RATIO: cost-to-income ratio is high at about -3448%.
6.
OTHER INDICATORS:
a. CASH
FLOW: cash flow is positive, around RM 12.5 million, equivalent to RM 0.01 per
share
b.
SUPPORT BY INSTITUTIONAL INVESTORS: this counter
is not well supported by institutional investors, there are only 2 institutional
investors at top 30 major shareholders list, including few insurance companies and
investment funds.
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