A gem is in the making
Finding growth
stocks with low price-earnings ratios has become increasingly challenging, but
Japfa appears to be a promising exception.
Japfa surged
9.72% on 29 Oct 2024, following the announcement of strong results for the
first 9 months of 2024. During this period, Japfa earned about 5.5 Singapore cts
per share, reversing a loss of Singapore1.42 cts per share for 9M2023. At
today's closing price of 39.5 cts and with the specially declared one-off interim
dividend of 1 ct for the first 9 months of 2024, the stock currently yields
2.53% - and this does not even account for the potential final dividend that is
likely to be declared.
Financial analysis for Japfa:
·
NAV
stands at 55 Singapore cts. So, P/B is only 0.72x.
·
The
forward P/E for the full year is around 5.39x.
·
If
the P/E were to reach a more reasonable valuation of 12x, the share price could
reach 88 Singapore cts, representing a potential upside of 123%. The surge
could be even greater if the company experiences further growth.
Technical
analysis:
The chart's upward trend resembles a growth stock's performance.
Superphang
http://superphang.blogspot.sg
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