$WELLCHIP (5325.MY)$ Based on the 1Q 2024 which was released...
Based on the 1Q 2024 which was released last week the revenue and net profit was RM 55 mil and RM 12 mil respectively. The net profit margin was 22%.
Annualised 4Q revenue and net profit for entire 2024 will be RM 220 mil and RM 48 mil.
Total no. Shares = 600 mil
EPS = 48/600 = 8 sen
PE ratio = 1.15/0.08 =14.4x
ROE = 16.5%
Peers:
1) *Pappajack*: TTM revenue, net profit and net profit margin of RM 120 mil, RM 21.2 mil and 17.6%. PE ratio of 37 x, ROE 8.4%.
2) *EMCC*= RM 100 mil, RM 13.6mil and 13.6%. PE ratio of 30x, ROE 7.5%.
Assuming average sector PE ratio of 35x, TP is RM 2.80
PE of 40x, TP is RM 3.20
At lowest PE of 25x the TP is RM 2.00
Annualised 4Q revenue and net profit for entire 2024 will be RM 220 mil and RM 48 mil.
Total no. Shares = 600 mil
EPS = 48/600 = 8 sen
PE ratio = 1.15/0.08 =14.4x
ROE = 16.5%
Peers:
1) *Pappajack*: TTM revenue, net profit and net profit margin of RM 120 mil, RM 21.2 mil and 17.6%. PE ratio of 37 x, ROE 8.4%.
2) *EMCC*= RM 100 mil, RM 13.6mil and 13.6%. PE ratio of 30x, ROE 7.5%.
Assuming average sector PE ratio of 35x, TP is RM 2.80
PE of 40x, TP is RM 3.20
At lowest PE of 25x the TP is RM 2.00
#Wellchip price stand at rm1.72 cent now which for me still consider cheap because at the lowest PE 25 the price should be around rm2 minimum and rm 2.80 maximum (based on its closest peers PE )..so i will hold wellchip til it reach its fair value.
Disclaimer: Not an investment advice. Trade at your own risk
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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