This stock was recommended by one of our group members and I find it quite interesting:
Credit to Mr. Koo.
P/E = 6.48 PASS
P/BV = 0.79 PASS
Dividend Yield = 1.85% FAIL
Profit Margin = 7.9% PASS
ROE = 17% PASS
Current Ratio = 1.35 PASS
Quick Ratio = 1.01 PASS
From all the quick analysis, CAN ONE only fails Dividend Yield. Looking at the Quarterly Report, the NTA has been growing steadily Quarter after Quarter. Performances has been stable.
With the recent Quarterly Report announced and the P/E has dropped to 6, it is a good catch. Downside risk is limited. The only concern is the Major Litigation within Can One, Dato See is challenging the GO of Kian Joo. Looking into this, the price more or less has been priced in.
Normally for a main board company, the P/E ratio should be around 10x.
If let's say we peg the P/E to 10x:
EPS 42 x PE 10 = RM 4.20
We give 30% haircut on the pricing = RM 2.94.
Looking to gain around 8~10% from this counter.
If the price goes against me, I am ready to hold this counter.