ONG88888) What to buy after you sell your Focus Lumber, Latitude and Canone?

Author: ong88888   |   Publish date: Wed, 25 May 2016, 10:07 PM 

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Classic Scenic announced an impressive quarterly result today with EPS of 3.47 Sen per quarter. Based on annualised EPS of 13.88 sen and RM1.33 share price, prospective PER is approximately 10 times only.

This latest quarter's net profit growth of 54% is very close to the 57% as forecasted in my earlier article dated 21 February 2016 :

With 0 debts, cash and cash equivalents increased RM 4.5 mil to RM 25.9 mil. Based on 120.5 mil shares, cash per share is 21 sen.

Management expects resilient growth to continue from strengthening housing sector in US.

Concluding remarks

Despite being one of the world's largest exporters of wooden picture frame mouldings, Classic Scenic remains a low profile and undercovered stock.

Last year, Classic Scenic surprised investors with 10 Sen dividend per share, 25% growth from 8 Sen a year ago. Based on share price of RM1.33, dividend yield is 7.5%.

My estimated dividend per share remains at 13 Sen in 2016, giving a very high 10% dividend yield! Where else can you find a stock that pays you such a high dividend yield?

My target price for Classic Scenic is RM2.16 based on 6% dividend yield. Potential return is a very tempting 62%!

Invest at your own risk. Please consult your investment adviser before making any decision.