Good morning.
Today, we feature a note on CWG Holdings Berhad in our FundTech Radar – 13th Mar 2018. The company is a fully integrated manufacturer and supplier of paper-based stationery items. It is also involved in the supply and distribution of non-paper based stationery, gift paper, printing materials as well as pre-school educational materials. Most CWG’s products are sold overseas.
Fundamental Stance
· Strong 3-year(FYE15-17) revenue and core PATAMI CAGR of 4.2% and 262.6% respectively
· FY17 core PATAMI margin dropped to 6.4% (vs. 7.5% in FY16)
· Net gearing ratio has declined significantly
· Dividend yield for FY17 is 2.9% with a dividend payout of 29.4%
· Although the performance of CWG will be affected by the impact of the tight supply of paper in the global market, it expects to remain profitable for the next six months of current financial year
· Currently trading at 8.8x 12-month trailing P/E, 15.1% premium to its 3-year historical average P/E of 7.7x
Technical Front
Prices consolidating in its falling wedge formation
Resistances: 0.67/0.77/0.91
Supports: 0.47/0.44/0.35
The above information is extracted from CIMB Research Report. For the full research reports, outlook and disclaimers, please logon to your account on www.itradecimb.com.my and click on <Research> Tab under Malaysia.
This FundTech Radar report is intended for educational purposes only. It represents a preliminary assessment of the subject company, and does not represent initiation into CIMB's coverage universe. It does not carry investment ratings and CIMB does not commit to regular updates on an ongoing basis.
13th Mar 2018
Disclaimers: This distribution is by CIMB Investment Bank Berhad (“CIMB”) in Malaysia only. The views are our own as of this date and subject to change. No further distribution is allowed without our prior written consent. CIMB, its related corporations, affiliates and business partners make no recommendation, offer or invitation to transact in any securities, futures contracts or other instruments. Please make your independent evaluation, consider your own investment objectives and financial situation and consult your own professional advisers before participating in any transaction.
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