Let me first start of with Action Asia. =)
Action Asia:
| BACKGROUNDThe Group was incorporated in Singapore on 2 August 2002 under the name of Action Asia Limited. The Group designs, manufactures and assembles mobile audio and video entertainment products. It is able to integrate sophisticated components into complete solutions which perform an array of functions customized specifically to its target market’s individual needs.
-from www.sgx.com |
Plus points for Action Asia
Action remains attractive, at 3x CY11 P/E and below its CY10 book value. Our target price remains S$0.40, offering more than 100% upside. This pegs Action at slightly below 6x CY11 P/E.
Action remains attractive, at 3x CY11 P/E and below its CY10 book value. Our target price remains S$0.40, offering more than 100% upside. This pegs Action at slightly below 6x CY11 P/E.
Good Business Fundamental
* Solid topline growth, reflecting its success with Philips. Action shipped close to 1.5m DVD players (mostly portable type) in 2Q, up from about 1m in 1Q10.
• 10th consecutive quarter of double-digit yoy profit growth. Bottom line would have been stronger, excluding S$278k for assets written off.
• Order momentum remains robust in the seasonally strongest 3Q withno signs of a slowdown from key customer. However, order visibility for 4Q remains cloudy at this moment. This is not surprising as we have assumed peak earnings in 3Q and a slowdown in 4Q.
• Raw material availability has improved, and there is more room forprice negotiations in 3Q. This could ameliorate ongoing pricing pressure.
* Solid topline growth, reflecting its success with Philips. Action shipped close to 1.5m DVD players (mostly portable type) in 2Q, up from about 1m in 1Q10.
• 10th consecutive quarter of double-digit yoy profit growth. Bottom line would have been stronger, excluding S$278k for assets written off.
• Order momentum remains robust in the seasonally strongest 3Q withno signs of a slowdown from key customer. However, order visibility for 4Q remains cloudy at this moment. This is not surprising as we have assumed peak earnings in 3Q and a slowdown in 4Q.
• Raw material availability has improved, and there is more room forprice negotiations in 3Q. This could ameliorate ongoing pricing pressure.
Stats and Figures
| Open : | 0.190 | No. of Shares : | 399.000m | PE : | 4.0 |
| High : | 0.190 | Mkt Cap : | S$75.810m | EPS : | S$0.048 |
| Low : | 0.190 | 52-Wk High : | 0.225 | Div : | S$0.01 |
| Last Close : | 0.185 | 52-Wk Low : | 0.130 | Yield : | 5.3 |
| Price-to-Book : | 0.91 | Avg. Vol : | 668 | NAV : | S$0.209 |
Attractive points:
Low PE of 4.
Decent Yield of 5.3%.
Potential of Dual Listing.
Check out this post on Action Asia
ReplyDeletehttp://www.nextinsight.com.sg/index.php/component/ccboard/view-postlist/forum-3-sgx-stocks/topic-3791-action-asia
Though its undervalued and upside is there. Business strategy wise, it might not be that ideal as it has only 1 customer - Philips.
hmm.. its posted by one of the forumer. Not sure how true is it. Is there any official documents that stated that Philips is their only customer?
ReplyDeleteCant seems to find it in their financial report.