TA Securities gives Solid Automotive fair value at RM0.56, using CY14 EPS of 7.5sen and fair PER of 7.5x, in line with its peers’ average trailing PER of 7.5x. Kenanga gives Solid Automotive target price of RM0.57, based on a FY14E PER of 7.8x, which is at 15% discount (for its relatively smaller market cap of RM84m and smaller niche in the Tier-2 market) from the current valuation of its closest competitors, New Hoong Fatt and Delloyd Ventures, both at current PER of c.9x.
Solid PE ratio is less than 10 with forecast growth of around 10%.
Solid Automotive Berhad does not have a formal dividend policy. However, the group intends a dividend payout ratio of 40%. The dividend yields are estimated at about 5%.
Net cash with no gearing.
Recent IPO info, here.
More info on Solid Automotive IPO, here.
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