Another undervalued stock

Val
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10 years 7 months ago #16030 by Val

Replied by Val on topic Another undervalued stock

OSK-DMG:

XMH announced it has acquired Mech-Power Generator (MPG), a 30-year-old manufacturer of diesel-powered generator sets.

The deal is strongly EPS-accretive, reduces business risk through diversification into adjacent sectors and immediately removes constraints on XMH’s growth.

Full-year MPG profits are about 34% of XMH’s. In FY14F/15F, we expect MPG to contribute SGD2.4m/5.1m to XMH’s core SGD14.4/15.0m (half-year contribution in FY14F).

MPG’s margins are trending up due to high-value, higher-margin contracts recently signed with more on the horizon. This deal will allow XMH (operating now at full capacity) to immediately expand its operations via MPG’s Iskandar
plant, bypassing workspace and foreign-worker constraints in Singapore. MPG will benefit from XMH’s strong balance sheet and access to financing to further grow its operations.

Following this deal, XMH is still net-cash and remains on the warpath for more acquisitions.

We raise FY14F/15F estimates by 10%/25% as MPG’s profitability well exceeds our prior acquisition assumptions. Our new assumptions include SGD0.5m/1.0m contributions in FY14F/15F from the next acquisition.

Upgrade to BUY with TP SGD0.55 based on 14x FY14F
EPS, justified by 33%/25% FY14F/15F EPS growth.

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Rich
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10 years 7 months ago #16289 by Rich

Replied by Rich on topic Another undervalued stock

HanKore is getting a lot of attention but is it undervalued?

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valuedstocks
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10 years 6 months ago #16566 by valuedstocks

Replied by valuedstocks on topic Another undervalued stock

I think Ocean Sky is undervalued as it is trading below cash and Ezion just recently announced that it is buying into the company ( valuestocksinvesting.blogspot.sg/2013/10...singapore-stock.html )

Other undervalued stocks in my opinion is Hongkong Land. The stock was highlighted in The Edge magazine in June as a value stock on a valuation basis. Interested readers can refer to the article below
valuestocksinvesting.blogspot.sg/2013/07...ingapore-stocks.html

_________________________________________________________
Disclaimer: This is not a buy or sell stock tip. Please do your own research.
Value investing blog: valuestocksinvesting.blogspot.sg/

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Val
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10 years 6 months ago #16761 by Val

Replied by Val on topic Another undervalued stock

Hiap Hoe is substantially undervalued at 80 cents (even after it has risen from 70 cents just a while back). A successful takeover of SuperBowl will raise its RNAV to above $2 a share. This company is undergoing restructuring with the successful buyout by the Teo siblings of their father's stake. More action to come .

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zane
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10 years 6 months ago #17014 by zane

Replied by zane on topic Another undervalued stock

Yes Hiap Hoe!

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Val
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10 years 5 months ago #17248 by Val

Replied by Val on topic Another undervalued stock

XMH is back again with a strong show of buying power: 760,000 shares at 37 cents.

Strong support at this level.

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