Remember the LORD for it is he who gives you the ability to produce wealth and so confirms his covenant... Deut. 8:18

Wednesday, May 28, 2014

Anomaly: IJM Plant cf. HS Plant

The shares pricing of these counters has bothered me quite a while:
IJM Plant (nta 172, Qeps 2.8/ 3.6/ 3.5/ 3.8/ 6.5sen) When assigned with a PE of  15 over the average of last two Qeps my fair value Fv would be 309
HS Plant (nta 239, Qeps 2.5/ 1.0/ 3.8/ 5.5/ 5.3sen) Fv 324 (assumed PE 15)
Swk Plant (nta 211, Qeps 2.7/ 0.5/ 5.7/ 5.4/ 6.4sen) Fv 354 (assumed PE 15)
Annual dividends of IJMP, HSP, SwkP is 7, 10 and 8 sen respectively.

Current share price of  IJMP is at RM 3.64 and is priced at PE = 364/20.6 = 18
Whereas current share price of HSP at RM 2.77 has a PE of 12
And SwkPlt at RM 2.67 carries a PE of 12.
Which tells me that HSP and SwkPlt share prices have a lot of catching up to do...

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