03-04-2019, 12:34 PM
Chasen Holdings announced that its 9M FY2019 net profit hits highest record in 7 years.
9M FY2019 net profit of 4.075M is a 34% increase compared to 9M FY2018's 3.052M.
9M earnings per share is also up 31%.
Full year FY2019 should be out soon. Today share price jumped 6% from 0.78 to 0.83 with high volume.
Currently trading at trailing PE ratio of 4.6-5.6x and PB ratio of ~0.43 I believe the stock is undervalued.
Chasen holdings has 3 operating segments.
1. Specialist relocation services
2. Third party logistics
3. Technical&Engineering services
It's largest is its specialist relocation services that contribute bulk of its revenue. I believe it has room to grow due to the current rapidly expanding e-commerce industry. Management consider themselves to have a competitive moat over its competitors in which it can provide complementary T&E expertise whilst its competitors dont.
Chasen's 3QFY19 (ending Dec 2018) was its 11th straight quarter of net profit, forming a good story of a turnaround company. They have also paid dividends to shareholders every year since FY2007. This year, they have announced an interim dividend of 0.1cent/share (their first in at least 10 years) to reward shareholders, showing confidence in their profitability.
Operating cashflow has also always maintained at healthy levels with positive net operating cashflow of $8.9 million for 9MFY19. Dividend payout is therefore sustainable.
“Demand for Chasen’s relocation services is still healthy despite China’s economic slowdown and the ongoing Sino-US trade dispute, as the production output from several move-in projects handled by our China subsidiary is mainly for the Chinese domestic market.” -Low Weng Fatt, MD and CEO, Chasen Holdings
Also on Chasen' s plans are potential spin-offs of its subsidiaries, which it believes will be able to unlock their value, as the sum of its parts is currently worth more than the whole.
9M FY2019 net profit of 4.075M is a 34% increase compared to 9M FY2018's 3.052M.
9M earnings per share is also up 31%.
Full year FY2019 should be out soon. Today share price jumped 6% from 0.78 to 0.83 with high volume.
Currently trading at trailing PE ratio of 4.6-5.6x and PB ratio of ~0.43 I believe the stock is undervalued.
Chasen holdings has 3 operating segments.
1. Specialist relocation services
2. Third party logistics
3. Technical&Engineering services
It's largest is its specialist relocation services that contribute bulk of its revenue. I believe it has room to grow due to the current rapidly expanding e-commerce industry. Management consider themselves to have a competitive moat over its competitors in which it can provide complementary T&E expertise whilst its competitors dont.
Chasen's 3QFY19 (ending Dec 2018) was its 11th straight quarter of net profit, forming a good story of a turnaround company. They have also paid dividends to shareholders every year since FY2007. This year, they have announced an interim dividend of 0.1cent/share (their first in at least 10 years) to reward shareholders, showing confidence in their profitability.
Operating cashflow has also always maintained at healthy levels with positive net operating cashflow of $8.9 million for 9MFY19. Dividend payout is therefore sustainable.
“Demand for Chasen’s relocation services is still healthy despite China’s economic slowdown and the ongoing Sino-US trade dispute, as the production output from several move-in projects handled by our China subsidiary is mainly for the Chinese domestic market.” -Low Weng Fatt, MD and CEO, Chasen Holdings
Also on Chasen' s plans are potential spin-offs of its subsidiaries, which it believes will be able to unlock their value, as the sum of its parts is currently worth more than the whole.