XMH's Strong 1H2026 Performance Signals Higher Dividends and Continued Share Price Momentum

XMH has announced a very strong set of results for 1H2026 ending 31 Oct 2025.

Earnings improved by 22.6% compared to 1H2025 and by 19.4% compared to 2H2025. ROE for FY2026 is estimated at about 32%.

Net cash flow from operating activities increased significantly from $1m in 1H2025 to $13.2m in 1H2026. Investing cash flow was positive at $12.3m, primarily due to proceeds from the partial disposal of a subsidiary corporation amounting to $12.3m. This means free cash flow has increased substantially, which bodes well for higher dividends in 2H2026 and the potential declaration of bonus shares.

The report also highlighted the following positive developments: The Group delivered a commendable performance in the first half of FY2026, with revenue increasing by 40.5% and profit after tax improving by 23% compared to the corresponding period last year. The strong results reflect sustained market demand and continued contributions from both the Distribution and Project segments.

Building on this momentum, the Group expects business activities to remain healthy in the second half of the financial year. A healthy order book continues to provide good visibility and supports the Group’s outlook for the remainder of FY2026.

The upward trajectory of XMH's share price is expected to continue.

Prescientsuper
https://superphang.blogspot.com

Undervalued Gem: Nam Lee's Explosive Margins Meet Single-Digit P/E Valuation

The main investment merits for Nam Lee Pressed Metal Industries are as follows:

· EPS surged an impressive 102.6% in FY2025 (rebounding from a loss-making FY2023), marking a dramatic turnaround in capital efficiency and profitability.

· Gross and net margins expanded significantly to 24.5% and 11.9% respectively, underpinned by strong revenue growth of 15.7% that demonstrates both operational leverage and pricing power.

At the current price of $0.625, the TTM P/E stands at an attractive 6.07x, while an enhanced dividend yield is expected given the improved profitability.

Nam Lee has successfully transformed from a loss-making operation to generating compelling returns for investors. With robust margins, strong earnings momentum, and highly attractive valuation multiples at 6.07x P/E and 0.81x P/B, Nam Lee stands out as a rare deep-value turnaround story with sustained operational improvement.

I estimate Nam Lee Pressed Metal will rise to $1.03 within the next 12 months, bringing it to a more reasonable valuation of 10x earnings and offering an upside potential of 65%. 

Superphang
https://superphang.blogspot.com