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
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