$TRULY INT'L(732.HK)

$TRULY INT'L(732.HK)

I bought this stock on 10 Mar 2021 at $1.37 apiece for its solid earnings in the first three quarters of FY2020 and before the earnings announcement for the whole FY2020 at end March. 

The revenue increased 0.7% in the first 3 quarters in 2020, and the profit was up 140% yoy. Trailing p/e was at a low 6.1x and p/b was at 0.537x then. Positive operating cash flow in 1H2020 and there was an insider purchase in early January too. I was anticipating good dividend yield and good earnings coming from the final earnings announcement. 

The company is principally engaged in the business of manufacture and sale of LCD products including touch panel products and electronic consumer products including compact camera modules, fingerprint identification modules, personal health care products and electrical devices.

It did not happen. Company did not give any dividend even though the earnings to me was solid. FY2020 earnings was down 11% year on year due to some provision and tax issues. When the company announced that its 1Q2021 earnings increased by 176% yoy, the bullishness of the share price movement and attention on this stock was back again. My target price of $2.10 given in InvestingNote was based on a forward p/e of 10x with an estimation of a growth of 20% EPS for the next 3 quarters. This 53.28% expected ROI within 3 months seems daunting but even that, the p/b will still be very low at 0.52x and hence my confidence.

As I wrote this, the price was at $1.97, up 9.44% over the previous closing price. It should meet my target faster than I first estimated.  

Superphang
http://superphang.blogspot.sg