not vested
Trading Buy: PPHB – 8273
(Last price: RM0.63, Potential upside +58.7%)
Company Profile
Public Packages Holdings Bhd involved in packaging manufacturing segment. It manufactures and retails corrugated cartons, packing materials, gift and display box and its products include offset printing, rigid boxes, corrugated cartons, the point of purchase display and paper products. It has operations in Malaysia and Singapore with the highest revenue generated from Malaysia.
Trading Catalyst
PPHB has plunged 77% throughout the recent Covid-19 pandemic towards the low of RM0.325.
We believe this is overdone and we reckon its rebound could sustain over the near term, supported by its
(i) 6Y revenue and net profit CAGR of 5.8% and 15.0%, respectively,
(ii) 6.3sen (c.10% of share price) net cash per share.
Moreover, PPHB has restarted paying dividends (0.25sen) for FY19 after 2.5sen paid in FY10 (stopped for 8 years).
Technically, it is poised for a consolidation breakout above RM0.63.
Technical View
Resistance: RM0.68 / RM0.725 / RM1.00
Support: RM0.605 / RM0.58
Cut loss: RM0.57
Key Financial Stats
Net cash per share: 6.3sen
6Y net profit CAGR: 15.0%
Source: HLIB