A year ago when I look at Amway but recommend to buy Zhulian, it was around RM8.00
Almost a year later, it is now around RM8.80 but the 52W High is RM9.80
If you look at the quarter results analysis below... together with the above price chart....
The share price was increased in late April 2011 but can't be sustained by the profit level. The PATMI margin was hanging around 11% on average for past 3 years while the turnover growth was stagnant.
Anyhow, based on historical dividend payout, we might be looking at a dividend of between 27 sen to 39 sen within next two months (the entitlement usually announce in mid-November). Based on current price level of around RM8.80, it is not a bad deal. Easily 3.4% (Expecting dividend of 30sen / RM8.80) return over immediate next 2 months.
Risk will be... this counter is relatively expensive, traded at over 200% of the comparison stock's PE, Zhulian.
PE Ratio based on today price vs. 4Qs Rolling PATMI
> Zhulian below 9.0
> Amway above 18.0
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