Fong Siling Vs Warren Buffet again!!
Reasons for Scientex!!
- Fong Siling said: Growth! Company growth!!
- • Scientex FY12 net profit of RM83.9mn! It had just announced its QE results, you can see the EPS rose to 10 cents! With the recent expansion mode of the company, there are more upside growth of the eps for the company! Its eps attributable to both its manufacturing (+8.8% YTD) and property segment (+11.7% YTD).
- The encouraging growth from its manufacturing segment was driven by the installation of one new stretch film line in September 2011 and 2 new PP strapping band line in February 2012. More important are coming 2 new manufacturing line in March 2013, which will increase production line to 22%~~
- Dividen policy of 30 % of revenue! wow! coming Dividen at 6 cents in December!
- ROE : > 15% ( fulfilled Warren Buffet philosophy!) this is as compared to its peer, BP plas and GWPlas with ROE < 15%
- Increasing NTA RM 2.44, and reduce Debt (Debt / Equity ration 0.5), with Current ratio 1. 47~~~!!!
- Active share buy back by directors and company!
- Don't surprise! It is the 5th Biggest company in the world for this line of sector!
If it's share price dropped below RM 2.35 ( support), it will be a bargain. Hopefully, with the recent GE 13 around the corner, its price will drop!! hoho!!
Update on 3 October, Scientex plans to buy GWPlast at RM 1.2 / share.