Company: Favelle Favco
http://www.favellefavco.com/
Business: Crane manufacturer
Shareholders: [Top30: 81.32%]
Muhibbah 55.24%
LTH 6.41%
Mac Ngan Boon 4.6%
EPF 1.05%
Catalysts:
1. Higher capex from Oil & Gas industry
2. Rising crude oil prices
3. Strong order flow (offshore crane)
4. Margins improvement
Risks:
1. Rising raw material prices
2. Double dip
Analysis:
1. Outstanding order book @ RM657.7m (equiv 1.35x 2011 revenue)
2. Revenue grew 25.8% after 2Y of negative growth. Trend to sustain into 2013
3. Margins have been improving for the last 5 years
Valuation:
1. Trading at 4.8x forward PE (assumption: 2011 EPS)
2. DY 4.8%
Upside: 68% (Target PE of 8x)
Share and Enjoy!http://www.favellefavco.com/
Business: Crane manufacturer
Shareholders: [Top30: 81.32%]
Muhibbah 55.24%
LTH 6.41%
Mac Ngan Boon 4.6%
EPF 1.05%
Catalysts:
1. Higher capex from Oil & Gas industry
2. Rising crude oil prices
3. Strong order flow (offshore crane)
4. Margins improvement
Risks:
1. Rising raw material prices
2. Double dip
Analysis:
1. Outstanding order book @ RM657.7m (equiv 1.35x 2011 revenue)
2. Revenue grew 25.8% after 2Y of negative growth. Trend to sustain into 2013
3. Margins have been improving for the last 5 years
Valuation:
1. Trading at 4.8x forward PE (assumption: 2011 EPS)
2. DY 4.8%
Upside: 68% (Target PE of 8x)
|
Did you enjoy this article? If so, then subscribe to our RSS Feed |
0 comments
Post a Comment