The analysis of reverse taking of PUC on Red Media Asia.
Please refer to --> http://www.redhot.asia/
From the website above, we know that Red Media Asia is previously own by Resource holding management LTD. It is a one-stop centre comprised of disruptive media businesses with some big client such as, YORK, HAIER, BMW,PORSCHE, DAIHATSU, UM LAND, HP, LG, OSIM, SEGI COLLEGE, BERJAYA and many more "BIG" name clients, mainly helping this big companies to do advertise and marketing.
After spending some time reading RMA annual report. There are some discovery. (2007- 2012) 5 years data.
Revenue (2007 - 2012) year
19.3m --> 22.4m --> 26.1m--> 44.3m --> 58.9m --> 45.6m
EPS (2007 - 2012) year
6.8sen --> 10.7sen --> 12.45sen --> 25.32sen --> 28.17sen -->25.9sen
Net cash company, high retained earnings. Steady growth company. The merging will defitely bring an optimistic prospects for PUC.
Value
PUC is a net cash company, although current quarter profit doesn't exit 2013 Q1 (50sen) but there is a possible PUC break new high in this financial year end 0.43 sen x 4 = 1.72 sen. (highest EPS was in 2011 = 1.65sen) With the continuous profit from RMA, reserves and cash will continue increase. Current NTA is 96sen with constant devidend since 2012. PUC is super undervalued.
Theme
World Cup advertising profit will pump into second quarter profit which will announce in August. Personally believe collection take place since Oct 2013 and volume start to be active. PUC has the potential to break 33sens in short term.
Timing
If buy in 17.5sen, cut loss can be at 15 sen since there is a gap. With the potential to 33sen.
Profit will be at least 88%.
Some important information in Annual report 2012 Red Media Asia
In Malaysia, business was secured with notable new advertising clients which including City University College, MCIS Zurich, SP Setia, Bank Islam, Polo House and Trend MicroSystems. At the same time, business continued to thrive with reputable existing blue chip clients of RHM’s such as Acson, Porsche Malaysia, Canon Printers, Singer Malaysia, Must Ehsan Development, LBS, Huawei, HiSense,Midea, SegI, Joven Marketing and Celmonze.
RHM’s financial services division, Ausscar Group continues to contribute to the Group at a slow pace.The management has renewed business partnerships with MSIG, AIG,, Kurnia Insurance, RedTone
Telecommunications, Mobile Money International, NV Alliance, OCBC, Lanfar Malaysia, Phillip Capital, Tokio Marine Life Insurance. Ausscar Group intends to continue to leverage on the core strengths of its people to focus on more streamlined services for its clients.
Since this is a penny stock from Ace market, although it the company is with bright prospect, I invested only 10% of my capital.
Recommendation : BUY
Target Price : Rm 0.30
Potential profit for short term: 80% and above
I'll not be responsible for any losses or lost profits resulting from investment decision.
Thank you very much if you spend time finish reading it.
