Pantech

Pantech

Postby winston » Wed Jan 10, 2018 8:36 am

not vested

Trading Buy: PANTECH-5125
(Last price: RM0.655, Potential upside +19.1%)

Company Profile
• PANTECH (listed in Feb 07), is primarily engaged in the business of manufacturing and trading of pipes, valves and fittings (PVF) as well as hot-dip galvanising process.

Trading Catalyst
• A dominant player in PVF market with a 40% share.
• Anticipate robust earnings growth in FY17-19 amid growing order flows from Rapid and strong recovery in oil prices coupled with resilient orders from diversified sectors.
• High barrier to entry as a 1-stop pipes, fittings and flow controls (PFFs) solutions provider, carrying ~30k inventory items.
• Potential triangle breakout, targeting RM0.70-0.78 levels.

Technical View
• Resistance: RM0.700 / RM0.740 / RM0.780
• Support: RM0.630 / RM0.620
• Cut loss: RM0.605

Key Financial Stats
• Trading at 10x FY18 P/E, supported by 38% EPS CAGR FY17-19
• Decent 3.8-4.5% DY for FY18-19

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: Pantech

Postby winston » Wed Jan 10, 2018 8:42 am

not vested

Oct 26, 2017

Full ownership of galvanising plant

Acquire full control of galvanising plant

Margins to improve further as galvanising plant achieves breakeven point in 2HFY18

Earnings growth momentum to sustain going into 2HFY18; supported by more orders from downstream projects, namely RAPID

Reiterate BUY with TP of RM0.85

Our target price is at RM0.85 – based on 12x CY18 EPS which is in line with its historical mean PE. In addition, the stock offers a CY18 dividend yield of c.4.3%.


Source: Alliance DBS
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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Re: Pantech

Postby winston » Wed Jan 10, 2018 8:45 am

not vested

Oct 25, 2017

Sell

Valuation

We maintain our TP of RM0.69 based on 0.9x CY18 P/B.

Although outlook remains buoyant, we downgrade Pantech to Sell from Buy as we believe it is now fairly valued.

The stock is currently trading at 11.6x PER, which implies a premium of 9.4% and 17.2% versus historical mean and peers average respectively.

This is following its 60% YTD gain in share price.

Source: TA Securities
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: Pantech

Postby winston » Mon Jun 11, 2018 1:55 pm

not vested

Trading Buy: PANTECH - 5125
(Last price: RM0.630, Potential upside +15.9%)

Company Profile
• PANTECH is engaged in trading and manufacturing of steel pipes, valves, fittings (PVF) for the use in the O&G industry.

Trading Catalyst
• PANTECH has registered strong revenue and net profit growth of 28% and 58% and in FY18, supported by better performance in the manufacturing segment arising from strong global demand.

• With the recovering crude oil price, the management is anticipating more activities within the O&G industries, coupled with the higher demand of PVF from the shale gas segment in the US, and should benefit the group eventually.

• PANTECH is retesting the SMA200 and poised for a sideways consolidation breakout over the near term.

Technical View
• Resistance: RM0.680 / RM0.700 / RM0.730
• Support: RM0.595 / RM0.580
• Cut loss: RM0.570

Key Financial Stats
• FY18 Net profit: RM47.0m (+58%)
• FY18 DY: 2.4%

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: Pantech

Postby winston » Mon Apr 29, 2019 9:09 am

not vested

Trading Buy: PANTECH - 5125
(Last price: RM0.580, Potential upside +17.2%)

Company Profile
Pantech (listed in Feb 07) is engaged primarily in:
(i) the trading of steel-related pipes, valves, fittings and flow control (PVF solutions)
(ii) the manufacture of butt-welded carbon steel, copper nickel & nickel alloy pipes & fittings.


Trading Catalyst

Pantech recorded commendable FY19 earnings of RM47.1m (-0.2% YoY) despite being slapped with US anti-dumping duties since July 2018.

We like the stock driven by potential earnings recovery, underpinned by a likely U.S. shipment suspension uplift, and increased local offshore fabrication activities.

Valuations are cheap at 8.3x FY20 P/E (33% below peer) and 0.74x P/B (54% below peer), supported by a steady 10% FY19-21 earnings CAGR and 4.1% DY

Technically, the stock is poised for a positive Cup & handle pattern formation, which could drive share prices higher towards RM0.64-0.68 levels.

Technical View
Resistance: RM0.615 / RM0.640 / RM0.680
Support: RM0.560 / RM0.550
Cut loss: RM0.535

Key Financial Stats
Trading at 8.3x FY20E P/E and 0.74x P/B (33% and 54% below its peer), respectively.

Source: HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Re: Pantech

Postby winston » Mon Aug 05, 2019 9:14 am

not vested

Trading Buy: PANTECH - 5125
Better times ahead with the upliftment of carbon steel shipment to US
(Last price: RM0.505, Potential upside +15.8%)

Company Profile

Pantech (listed in Feb 07) is engaged primarily in:
(i) the trading of steel-related pipes, valves, fittings and flow control (PVF solutions); and
(ii) the manufacture of butt-welded carbon steel, copper nickel & nickel alloy pipes & fittings. The trading and manufacturing divisions contributed 63% and 57% to FY19 revenue, respectively.


Trading Catalyst

PANTECH tumbled 18% from YTD high of RM0.615 to RM0.505 last Friday following the 1Q20 results, which was announced on 25 July (PBT +1.9% QoQ, but -23% YoY mainly due to the suspension of shipments to the US for its carbon steel fittings), coupled with persistent selling forces by 3rd largest shareholder Koperasi Felda (ceased to be a major shareholder on 24 July holding 27m or 3.6% shares vs. 6.7% on 26 July 2018).

Nevertheless, PANTECH
(i) provides attractive risk-reward profile at 7.6x FY20E P/E (22% lower vs. peers),
(ii) supported by the upliftment of US shipment suspension (on 14 June),
(iii) attractive 5% DY with (iv) 7.5% FY19-21 earnings CAGR.

Technically, the Tweezers bottom formation could signal potential downtrend reversal with upside targets set at RM0.53-0.585 levels.

Technical View
Resistance: RM0.530 / RM0.550 / RM0.585
Support: RM0.490 / RM0.485
Cut loss: RM0.475

Key Financial Stats
Trading at 7.6x FY20E (22% below its peers)
5% FY20E DY

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
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winston
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Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Pantech

Postby winston » Mon Aug 05, 2019 9:14 am

not vested

Trading Buy: PANTECH - 5125
Better times ahead with the upliftment of carbon steel shipment to US
(Last price: RM0.505, Potential upside +15.8%)

Company Profile

Pantech (listed in Feb 07) is engaged primarily in:
(i) the trading of steel-related pipes, valves, fittings and flow control (PVF solutions); and
(ii) the manufacture of butt-welded carbon steel, copper nickel & nickel alloy pipes & fittings. The trading and manufacturing divisions contributed 63% and 57% to FY19 revenue, respectively.


Trading Catalyst

PANTECH tumbled 18% from YTD high of RM0.615 to RM0.505 last Friday following the 1Q20 results, which was announced on 25 July (PBT +1.9% QoQ, but -23% YoY mainly due to the suspension of shipments to the US for its carbon steel fittings), coupled with persistent selling forces by 3rd largest shareholder Koperasi Felda (ceased to be a major shareholder on 24 July holding 27m or 3.6% shares vs. 6.7% on 26 July 2018).

Nevertheless, PANTECH
(i) provides attractive risk-reward profile at 7.6x FY20E P/E (22% lower vs. peers),
(ii) supported by the upliftment of US shipment suspension (on 14 June),
(iii) attractive 5% DY with (iv) 7.5% FY19-21 earnings CAGR.

Technically, the Tweezers bottom formation could signal potential downtrend reversal with upside targets set at RM0.53-0.585 levels.

Technical View
Resistance: RM0.530 / RM0.550 / RM0.585
Support: RM0.490 / RM0.485
Cut loss: RM0.475

Key Financial Stats
Trading at 7.6x FY20E (22% below its peers)
5% FY20E DY

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am

Re: Pantech

Postby winston » Mon Aug 05, 2019 9:14 am

not vested

Trading Buy: PANTECH - 5125
Better times ahead with the upliftment of carbon steel shipment to US
(Last price: RM0.505, Potential upside +15.8%)

Company Profile

Pantech (listed in Feb 07) is engaged primarily in:
(i) the trading of steel-related pipes, valves, fittings and flow control (PVF solutions); and
(ii) the manufacture of butt-welded carbon steel, copper nickel & nickel alloy pipes & fittings. The trading and manufacturing divisions contributed 63% and 57% to FY19 revenue, respectively.


Trading Catalyst

PANTECH tumbled 18% from YTD high of RM0.615 to RM0.505 last Friday following the 1Q20 results, which was announced on 25 July (PBT +1.9% QoQ, but -23% YoY mainly due to the suspension of shipments to the US for its carbon steel fittings), coupled with persistent selling forces by 3rd largest shareholder Koperasi Felda (ceased to be a major shareholder on 24 July holding 27m or 3.6% shares vs. 6.7% on 26 July 2018).

Nevertheless, PANTECH
(i) provides attractive risk-reward profile at 7.6x FY20E P/E (22% lower vs. peers),
(ii) supported by the upliftment of US shipment suspension (on 14 June),
(iii) attractive 5% DY with (iv) 7.5% FY19-21 earnings CAGR.

Technically, the Tweezers bottom formation could signal potential downtrend reversal with upside targets set at RM0.53-0.585 levels.

Technical View
Resistance: RM0.530 / RM0.550 / RM0.585
Support: RM0.490 / RM0.485
Cut loss: RM0.475

Key Financial Stats
Trading at 7.6x FY20E (22% below its peers)
5% FY20E DY

Source: Bloomberg, HLIB
It's all about "how much you made when you were right" & "how little you lost when you were wrong"
User avatar
winston
Billionaire Boss
 
Posts: 118528
Joined: Wed May 07, 2008 9:28 am


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