IPO PE too high?
Speedmart IPO PE at ~35%. (Typical should be 20-30%, above 30% means overpriced). Profit margin is only at 4-6%. Long run doesn’t seem good despite fundamentals being good in the past few financial years. Fundamentals were okay and playing well only because of the growth of stores during pandemic, but it will reach the limit of stores it can open in terms of store per area. If can IPO maybe can short sell it I guess.
TLDR, from my view: Growth is heavily based on opening as many stores as possible & not on profit margin (as expected lah) so take this into consideration when investing in long run (>5 years) assuming no any other expansion or changes to current company’s vision on controlling the main market share of retail marts.
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Not a financial guru, just somebody that likes to teach others based off my 7 years of experience in the trading world.
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贪玩的股票小白 : May I know how to calculate the PE of 35%?
RandomTrader_ OP 贪玩的股票小白 : was on KLSE I saw earlier