Ornapaper Berhad (ORNA)

Ornapaper Berhad (ORNA)

Postby winston » Wed Jan 24, 2018 8:39 am

not vested

Trading Buy: ORNA - 5065
(Last price: RM1.38, Potential upside +15.9%)

Company Profile
• Ornapaper Berhad (ORNA) is involved in the paper packaging industry and is a leader in the corrugated boards and carton manufacturing industry. With the current capacity, the company is able to produce 84,000 M/T of corrugated boards and cartons per annum.

Trading Catalyst

• We noticed the e-commerce sales have been picking up in terms of volumes and transaction values with the recent trending marketing events. With that, the packaging industry should be a proxy towards e-commerce sales, suggesting higher demand in paper packaging, eventually.

• Currently, 9M17 revenue and PAT stood at RM239.9m and 10.9m, which is 20% and 68% higher on the yearly basis compared to the corresponding period.

• Also, we think Orna is trading at decent single digit PE of 8.3x, based on the trailing 12M EPS of 16.6sen.

Technical View
• Resistance: RM1.45 / RM1.52 / RM1.60
• Support: RM1.33 / RM1.31
• Cut loss: RM1.29

Key Financial Stats
• Trailing 12M PE: 8.3x (Peers average: 20.0x).
• Dividend yield: 1.8%

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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