A Personal Finance Blog for Malaysian: KFIMA - Deep Undervalued Company?

Thursday, March 28, 2013

KFIMA - Deep Undervalued Company?

KFIMA - Kumpulan FIMA Berhad

This company has 5 core businesses

  • Manufacturing, which include production and trading of security and confidential documents
  • Bulking provide bulk handling and storage of liquid products and cargoes, warehousing and transportation and customs forwarding services; 
  • Plantation include oil palm and pineapple estate operations; 
  • Food include manufacturing and packaging of food products, and 
  • Others include investment holding, rental and management of commercial properties and local and international trading.
Recent price

4 Weeks Range:1.81 - 1.92
52 Weeks Range:1.73 - 2.50

Currently trade at
- Below PE of 6.0x [latest 4 quarters EPS about 33 sen (1.92/0.33= 5.75)]
- Below Net Asset per share of RM2.22 (as at 31.12.2012)
- EPS CAGR (Compounded Annual Growth Rate) of
   - 13% since FYE31.3.2010.(4 years)
   - 17% since FYE31.3.2009 (5 years)
- Cash per share of RM0.92 or approx 48% of the price you pay is cash.

Plantation contributes only 40% of PBT for FYE31.3.2012.

Price receded to low of RM1.73 from 52-w high of RM2.50 over last few months, mainly due to the ESOS exercised by the entitled employees at RM1.48 (up to 3% of share capital, only 1.23% being exercised as at latest announcement in March 2013)

So, is this company consider undervalued? Well, PBB Investment Bank target price for KFIMA is RM3.21.

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