|GESHEN (RM mil)||FY15Q3||FY15Q2||FY15Q1||FY14Q4||FY14Q3|
|Raw material used||20.17||18.07||5.70|
|Raw material %||44.7||49.9||32.1|
|Net Cash Flow||-7.8||-12.7||-3.1||2.3||-0.8|
|D/E Ratio||Net cash||0.09||Net cash|
To me, this is definitely a superb result as I only expect full year PATAMI of RM11.8mil for Geshen.
Annualizing this figure we can get 26.5sen EPS a year.
If we give it a fair PE ratio of 10x, then its target price will be RM2.65. If PE 8x, it will be RM2.12.
However, I think this is fair as FY15Q3 is the first quarter that included Polyplas's contribution fully.
Furthermore, Geshen may still has room to grow as its 75%-owned Polyplas seems to be in growing mode, and it may acquire the remaining 25% shares later.
In another development, Geshen announced that its new major shareholder Mr Chan CK has been appointed as joint managing director of the company, who will be in charge of the company's day to day operation.
Is this a good or bad news?