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Friday, 29 November 2013
Boilermech: Good But Expensive
Boilermech FY14Q2 Financial Result
Boilermech latest result is good. Its revenue increases 7.4% from RM51.5mil to RM 55.3mil QoQ. Net profit rises 14.3% QoQ to RM7.2mil due to better margin in current quarter.
For 1HFY14, its revenue and net profit increase by 22% and 26% compared to corresponding period of last FY.
The better results are all due to better business activity in the company.
I think Boilermech will have no problem to produce RM30mil net profit for the whole FY2014. Base on the current total shares of 258mil before the proposed bonus issue, my own target price for Boilermech is only RM1.74 (PE ratio of 15x).
Apparently at current share price of RM2.44, even though it has proposed bonus issue and transfer to main board, I will not touch it unless it goes down below RM1.50, which is highly unlikely...