Today, we feature a note on Priceworth International Berhad in our FundTech Radar – 8th May 2018. The company is a fully integrated timber operator in both upstream and downstream sectors, with 25 years of experience in the industry. In FY17, total revenue was made up of 80% export market.
· Despite 3 years of losses, PWORTH saw its performance improved and turned profitable from FY15 onwards.
· Net gearing ratio dropped slightly.
· No dividends in the past.
· With the acquisition of FMU5, PWORTH expects further improvement in their results as a direct contribution from the operations of the FMU5.
· The Sabah Forestry Department has issued new Coupe Permits to commence operations in 2018 for 2 additional compartments within FMU5.
· A new container flooring production line will be constructed to fulfill the demand from the recent RM120m container deal from China.
· There is strong demand for plywood from the Japanese market.
· Currently trading at 25.4x 12-month trailing P/E, a 142.9% premium compared to its peers.
Trend remains down.
The above information is extracted from CIMB Research Report. For the full research reports, outlook and disclaimers, please logon to your account on www.itradecimb.com.my and click on <Research> Tab under Malaysia.
This FundTech Radar report is intended for educational purposes only. It represents a preliminary assessment of the subject company, and does not represent initiation into CIMB's coverage universe. It does not carry investment ratings and CIMB does not commit to regular updates on an ongoing basis.
8th May 2018
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