I would like to share another value stock with potential growth in its next earnings report.
Tat Seng Packaging is a subsidiary of listed company Hanwell.
Earnings from FY2013 to FY2016 has grown from 11.84m to 14.51m.
PE ratio is low at 7.47 and the company has seen a growth in dividend payout from $0.01 in 2013 to $0.03 in May 2017. This translates to about 4.35% yield at current trading price.
In Hanwell's latest report, it has noted that the increased earnings and profit from Tat Seng has helped neutralised the downward trends in other segments of its business. Thus, we should expect higher earnings from Tat Seng in the upcoming earnings report.
The small public float of 18% also makes it a possible target for takeover, similar to Tung Lok's case where it has seen it share price soar more than 100% this year with a public float of about 10%
High revenue and income growth and largely owned by a single shareholder (Hanwell).
In latest Hanwell's reports, it was mentioned that Tat Seng continued to contribute largely to their revenue growth while other departments were performing less than ideal.
Tat Seng offers more than 4% dividend yield at the moment and is trading only at 4.18 PE.
Tat Seng is, in my humble opinion, a very much neglected stock like PCI.
1. Analysts are falling over themselves to recommend Fu Yu.
Book value is grossly understated because Fu Yu recognises historical cost minus depreciatiion.
2. Fu Yu has recently privatised LCTH on Bursa Msia. I interpret that this move is a prelude to Fu Yu being taken private.
