not vested
Trading Buy: JOHOTIN - 7167
(Last price: RM1.00, Potential upside +16.0%)
Company Profile
• Johotin is involved in the manufacturing of various tins, cans, tinplates, and other containers. It also manufactures and sells milk and related dairy products.
Trading Catalyst
• Bloomberg consensus is predicting a stable 8% growth from FY17-20, propelled by capacity expansion in its F&B segment while demand for the tin manufacturing segment, is expected to grow marginally in the matured and stable industry
• We like JOHOTIN for its favourable industry outlook, sound balance sheet (net cash of 7sen/share) and generous dividend yield of 4% (peers average: 2.1%).Valuation is cheap at 10.3x FY19 P/E vis-à-vis its peers (22x).
• Positive downtrend line breakout to retest RM1.09-1.16 targets.
Technical View
• Resistance: RM1.06 / RM1.09 / RM1.16
• Support: RM0.960 / RM0.930
• Cut loss: RM0.920
Key Financial Stats
• Trading at 10.3x FY19E (53% below its peers), supported by 4% DY (peers: 2.1%)
Source: HLIB