Thursday, March 6, 2014

Fimma - double digit growth with low PE

A trading company in electrical home appliances, is seeking to maintain double digit net profits, it has been enjoying for the past four years prior to 2014.

The company plans to expand its trading and services section (which currently (Feb 2014 sells electrical home appliances, sanitary ware, and medical devices and healthcare products).

Under its in house brands are ELBA, Faber, Rubine, MEC and Tuscani which contribute 80% to its sales, Agency products are Braun, Whirlpool and Omron.

Trading and services contributed 90% to group revenue, with property development contributing the rest.

Moving into FY2014, the property development is due to increase its contribution to group revenue to 20% at most.

It has three ongoing projects and another three in the pipeline, with a total GDV of rm1.5 billion … in KL and Johor.

The group is on the look out to buy more land, primarily in the Klang Valley.

Apart from continued earnings growth for the past five years since FY2009, it has been able to sustain its net profit margins between 10% and 12% in the last four financial years. Revenue has also recorded double digit growth in the same period of between 12% and 14%.

It is currently (28 Feb 2014) trading at a PER of 6.6 times.

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Please note that all data given are merely blogger's opinion. It is strongly recommended that you do your own analysis and research before investing.