Here's the report from The Edge:
KUALA LUMPUR: DRB-HICOM BHD []’s earnings rose 114% in the second quarter ended Sept 30, 2010 from RM61.74 million a year ago.
It said on Thursday, Nov 25 profit before tax increased nearly 143% to RM186.2 million compared with RM76.66 million.
Revenue rose 7.5% to RM1.647 billion from RM1.531 billion. Earnings per share were 6.84 sen compared with 3.19 sen.
My Comment:
1. DRB-Hicom is no longer an automotive stocks as the Company now has Property business, Puspakom, Modenas and other businesses. However, the Company's historical PER or "HPER" is comparatively low at 5.32x. For example, APM HPER = 14.07x, MBMR 10.8x while AUTOV (relatively small auto sector stocks) trade at 10.3x HPER.
2. Taking a 30% discount on MBMR and AUTOV HPER to reflect the Conglomerate discount to DRB-HICOM, we get 7.39x HPER. If the market agree to the 30% discount, then DRB-HICOM got potential to go to RM1.80.
3. The stock is linked to Syed Mokhtar Al Bukhary
4. The historical dividend is relatively low with 4 sen gross dividend given in Financial Year ending March 2010.
This blog is related to observations regarding stocks traded in Malaysia. Disclaimer: The company analysis that appear in this blog is merely facts gathered from different sources and the author's personal view. It is not a buy or sell recommendation. The author do not guarantee the accuracy of the facts being presented. Please consult your investment advisors before acting on any information provided by the analysis above.
I think next few days, DRB will be more speculative than fundamental. Many said it is heading to RM2.00. Those who are buying it or those who just bought it few days ago don't even know what is DRB PE ratio.
ReplyDeleteMalaysia market, only small percentage will look at the fundamental.