Excelpoint's Stellar FY2017 performance

Refer to my earlier post of 13 Feb 2018 on my estimation of the good FY2017 result for Excelpoint and the recommended timing of entry:
https://superphang.blogspot.sg/2018/02/excelpoint-eagely-waiting-for-its.html
Yes, it went up 3.5 cents, up 5.47% and  closed at 67.5 cents. 

Excelpoint just released its stellar FY2017 result on 14 Feb 2018. The highlights were:

• Strong operating performance for FY2017 with record revenue (up 16% yoy)
• Improved balance sheet with increased shareholder equity
• Strategic focus on segments related to the Internet of Things (“IoT”) to explore new growth areas
• Net profit increased 14.8% yoy
• Better dividend declared: A total of 4.5 cents (ordinary + special), 0.5 cents more than the preceding year. The dividend yield based on the closing price on 14 Feb 2018 is 4.5/67.5 = 6.67%. 

The management is confident in its business growth

"The outlook for the electronics and semiconductor industry continues to be positive in 2018. We continue to see business opportunities arising in the markets we serve. Increasingly, technology applications require more electronic components than before, and this is one of our key growth drivers. The recent Consumer Electronics Show held in Las Vegas in January 2018 showcased many new and exciting developments, which will fuel additional demand for technology solutions and applications especially in wireless connectivity and sensors, which are vital segments to the entire Internet of Things (“IoT”) infrastructure. We believe that these developments will support our business growth for FY2018."

Solid p/e and PEG ratio

Based on the closing price of 67.5 cents on 14 Feb 2018: 

p/e is 7.455x.  

PEG ratio is 0.504.

This is easily a 2-bagger.

Conclusion
I will get the 6.67% dividend first while patiently waiting for Mr Market to adjust its price upward to come closer to its fair value of $1.35. 

Superphang

https://superphang.blogspot.sg