FA for HwaHong,
Simple FA - Quantitative Analysis,
- NAV - 0.319 (Not at Discounted NAV)
- PE - 6.6x ( EV/EBITDA = 0.68 vs PE 6.6x means overvalued)
- Yield - 4.945% (attractive yield)
Financial Ratio,
- - Current Ratio > 10 (Good)
- - Debt to Total Equity < 11% (Good)
HwaHong has a good track record of constant performance, pretty easy to compute the Intrinsic value of the stock which value at 0.87 (based on Dividend Discount Model) or Graham quick Formula of 0.97. Even from Financial Ratio, very good and healthy company with plenty of Cash Flow. In short, from Financial Standpoint, they are a healthy company.
From FA - Quality Analysis,
HwaHong is in multi-industry but primary income revenue is generated by the Sales of Investment Securities. From the Annual Report, pretty difficult to understand how they really make money - Where the Sales of Investment Securities come from. From business standpoint, I would suggest "So-so" company.
From TA for HwaHong (weekly Chart)
Trend - Side
Momentum - Moderate
Support - 0.469 (Or Fibonacci Retracement at 78.6%)
Resistance - 0.52
From TA, this stock is testing the 0.469 support, once it breaks this support, it will test the next one at 0.40.
Conclusion,
Yes, it is a well run company with good financial ratio. It is not a under value stock, but it's intrinsic value at 0.87-0.9 is there. Do note that the Ongs has a good history of trading their own stock - see the insider trading history. With Strong Cash Flow, it will not be surprise that they will support their own stock - as securities investment is part of their income revenue.
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