Financial year 2020 profit of $25.2 mil was Kimly highest since listing in 2017.
But it appears that 2021 is going to be even better than 2020. At half time the
profit is already $21.7 mil which is 86.1 % of 2020 full year. So 2021 is going
to be Kimly' s best since listing.
1. high dividend yield
estimate current full year dividend to be 2.0 cts. Half year dividend is 0.56 cents, which is double last year dividend of 0.28 cents. Last year full year dividend was 1.12 cents. On current price of 35.0 cents, the dividend yield for current year would be 5.7%.
2. attractive valuation
Based on half year profit of $21.7 mil, current price of 35.0 cents and number of shares at 1,190,055,000, the half year p/e is only 19.2 X. Assuming that the 2nd half profit is the same as 1st half, the full year profit would be $43.4 mil. This give Kimly a p/e of less than 10X, which is very low compared to it' s historical p/e of 16.5X to 20.7X. Most other food companies are trading at much higher valuation.
3. potential for further growth
in an earlier posting I mentioned that the impact of Kimly' s aggressive acquisition in late 2019 and early 2020 will be reflected in 2nd half of 2020 and current year. The results of the 2nd half 2020 ($14.6 mil) and 1st half 2021 ($21.7 mil) bear me out. Current year result is likely to be the best ever for Kimly. The intended acquisition for Tenderfresh is likely to add to thecompany' s revenue and profit.
Note : above are just my thoughts and assessment of Kimly and I could be wrong. I could be bias as I am heavily vested. Pls do your own due diligence.
3. it has good dividend yield . Dividend is likely to go
higher as its profit grow as company has a dividend policy
of distributing 50% of its profits as dividend.
4. its trading far below its historical p/e. See below:
2017 - 19.44
2018 - 19.03
2019 - 20.70
2020 - 16.50
current - 11.44
Source _ ShareInvestor.com
Above are just my thoughts and I could be wrong as
market conditions are continuously changing. Pls do
your own due diligence.
CGS-CIMB Research analysts Ong Khang Chuen and Kenneth Tan have initiated add on Kimly Group with a target price of 46 cents, representing a 20.0% upside to the counters last-closed price of 38 cents.
