1. Company’s Management
Ex CEO Tan Boon Teik resigned and disposed his 3.997m shares on 23 June 2015. Another announcement filed with Bursa stated the total 3.997m shares were acquired by Mr. Chuah Chong Ewe. One thing I like about the management is they file the relationship of the shareholders. I perceived that there is a Management change in Penta although the shareholders are related. The price did went up for awhile from 0.75 to 0.90 then soften back. Perhaps it might due to the feel good factor of new CEO.
2. Business Analysis
Semicon and exports related has been doing good this year. I expect the Penta's price should be OK for the rest of this year. Revenue / Profit expected to be stable for 2015 due to the other income gains reported in the Latest Quarterly Report.
For normal fundamental analysis, as long as Current Quarter is better than Previous Quarter means good? Theoretically yes. But under Good Accounting Analysis, we prefer to look at Current Quarterly Report VS Last Year Quarterly Report. For Penta, it is 5.4m for Q3 2015 vs 2.0m for Q3 2014.
We minus out the 2.6m from other income means it is left with 2m plus profit. Slightly better compare to Q3 2014. Neutral.
Profit Margin : 14% pass (<5% fail)
Interest Cover : 17x pass (<3x fail)
Profit for the past 3 years (pass)
Current Ratio : 1.91 pass (<1x fail)
Debts to Equity Ratio : 0.44x pass (>3x fail)
Positive at least 1 year: Pass