3A

3A

Postby winston » Wed Aug 16, 2017 8:59 am

not vested

Trading Buy: 3A-0012
(Last price: RM1.35, Potential upside +15.6%)

Company Profile

Listed in 2002, 3A is an established regional F&B ingredients player. Its products are relatively recession proof as they are crucial components for a wide cross section of F&B manufacturing processes. Current, it exports over 30% of its revenue to more than 30 countries.

Trading Catalyst

3A growth is driven by :-
(1) steady underlying demand growth in the F&B industry;
(2) growing export markets and increased product portfolios;
(3) reaping long term synergistic benefits from strategic alliance with Wilmar and
(4) expanded capacity, higher economies of scale and improving production efficiency.

Undemanding valuations (P/E and P/B) against its peers

LT bullish saucer bottom formation

Technical View
Resistance: RM1.39 / RM1.46 / RM1.56
Support: RM1.32 / RM1.29
Cut loss: RM1.26

Key Financial Stats
10-year strong earnings growth at 16%
Trailing 12.5x PE is 38% below peers

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
Billionaire Boss
 
Posts: 109410
Joined: Wed May 07, 2008 9:28 am

Re: 3A

Postby winston » Mon Jul 23, 2018 8:36 am

not vested

Trading Buy: 3A-0012
(Last price: RM0.980, Potential upside +24.5%)

Company Profile
• 3A is a leading food and beverage ingredients manufacturing company.

Trading Catalyst

• Despite near term challenging outlook, we still like 3A for the robust sales of its resilient F&B ingredients, healthy balance sheet (with RM22m netcash), as well as proven track record that is supported by strong brand equity of its products both domestically and in export markets

• Valuation is undemanding at 12.8x FY19E P/E (12.2x if ex-cash of RM22m or 4.5sen/share), a 21% discount below its peers, supported by a strong 14% FY18-20 EPS CAGR.

• More upside towards RM1.10-1.22, pending a downtrend line breakout soon.

Technical View
• Resistance: RM1.03 / RM1.10 / RM1.22
• Support: RM0.940 / RM0.910
• Cut loss: RM0.890

Key Financial Stats
• Trading at 12.8x FY19E P/E (about 21% below its peers), supported by a strong 14% FY18-20 EPS CAGR.

Source: 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: 109410
Joined: Wed May 07, 2008 9:28 am


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