19 December 2011
Two counters highlighted in this week's equities flyer:-
1. V.S. INDUSTRY BERHAD (stock code: 6963)
VS Industry invests RM30 million in Johor
Integrated electronic manufacturing services (EMS) provider V.S. Industry Bhd has invested about RM30 million to produce Keurig single-cup coffee brewer machines in Senai, Johor. The dedicated 2.4ha facility will see VS Industry producing Keurig Inc’s single-cup brewers and accessories for exports to North America. The facility’s 200,000 square feet area will also be used for its packing, logistic and storage.
Did you know?
VS Industry Berhad Malaysia has over 27 years of Multi-products OEM contract manufacturing/EMS experiences. VS is among the top 50 Contract Manufacturing services providers in the world. Its operations locate in Malaysia, Indonesia, Vietnam and China employing over 15,000 workers and operating on more than 5 millions sq. ft. of manufacturing space and still adding.
Rationale
VS is highlighted this week based on the following points: -
Low Historical P/E of 9.6x with a forward P/E of 4.0x
Currently trading at a low P/B of 0.69x
Increasing Revenue and EPS since 2009
High dividend yield of 6.08%
2.METRO KAJANG HOLDINGS BERHAD (stock code: 6114)
The Group’s revenue for the fourth quarter ended 30 September 2011 increased by 74% to RM125.2 million
The Group’s revenue for the fourth quarter ended 30 September 2011 increased by 74% to RM125.2 million compared to the preceding year corresponding quarter of RM71.8 million. The profit before tax increased by 14% to RM20.1 million compared to the preceding year corresponding quarter of RM17.7 million due to principally higher profit contribution from the associated company and higher percentage of profit recognition of on-going and new projects from the property and construction division. However, the higher profit contribution from the property and construction division was reduced by the higher administrative and other expenses incurred by the plantation division.
Did you know?
The MKH Group comprises of 48 subsidiaries and 1 associate company and are principally involved in property development, hospitality services, investment holding and furniture manufacturing. The MKH Group has completed over 20,000 units of properties and is well known as a reputable property developer, especially in Kajang. In addition, the Group also operates a hotel (Prescott Metro Inn) and 2 shopping complexes (Plaza Metro Kajang and Metro Point Complex) in Kajang town itself.
Rationale
MKH is highlighted in this week's flyer based on these points: -
Currently trading at a low P/B of 0.59x
Low P/E of 11.32x in comparison to the KLCI of 15.75x
Thank you & Happy Trading!
(Information from MBB)
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