Thursday, June 26, 2025

Potential 3.7-Bagger with 10% Yield

The CEO of XMH, Tan Tin Yeow, made frequent open-market purchases prior to the end of February 2025, which caught my attention and prompted me to evaluate and accumulate shares of this hidden gem.

On 26 June 2025, XMH announced strong full-year results for FY2025 (financial year ended 30 April), with EPS surging 103.4% compared to FY2024. EPS for 2H2025 was 11.8 cents, essentially sustaining the solid 11.49 cents achieved in 1H2025.

Based on the closing price of 78 cents on 26 June, the stock offers an attractive dividend yield of 10.26% (8/78) and is trading at a low P/E of 3.25x. If the market re-rates the stock to a more reasonable P/E of 12x, the potential upside is significant — the share price could reach $2.88, representing a 3.69-bagger from current levels.

There may be even greater upside if the CEO initiates a privatization offer or if earnings continue to improve.


Superphang
http://superphang.blogspot.sg

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