ELK-Desa Resources Berhad is incorporated and domiciled in Malaysia. It was listed on the Main Market of Bursa Malaysia Securities Berhad on the 18th December 2012.
ELK-Desa Resources Berhad through its wholly-owned subsidiary, ELK-Desa Capital Sdn Bhd is primarily involved in the business of hire-purchase financing for used motor vehicles. The Group is also involved in selling general insurance policies as an insurance agent through ELK-Desa Risk Agency Sdn Bhd.
After listing in Bursa, the company posted a good and stable earning at 12.95sen and 13.12sen for FY2013 and FY2014. The company also declared dividend of 6.5sen and 7.5sen for FY2013 and FY2014.
The company have a dividend payout ratio of 50% or more in the past two years.
In the latest Q1-Q3, total EPS for the company is 10.91sen and Q4 result will announce on May, assume that company Q4 earning per share maintain at 3sen, full year earning for Q1-Q4 will be 13.91sen, the earning will show better compare to previous year.
In the past two years, company also will proposed dividend on Q4 and announce the entitlement date around June to July. Which mean, dividend will announce in the coming quarter around May. Based on the current earning, company very high chanse will proposed 7.5sen dividend which is around 5.28% yield base on current share price Rm1.42.
Based on past movement, share price will starting move up somewhere around April and will slowly go up until August.In 2013, the share price from Rm1.15 go up till Rm1.65 and for year 2014 share price from Rm1.35 go up till Rm1.67.
From the latest chart movement, the company show a very strong support at Rm1.37 level and look like going to go up soon and breaking the down trending line.
With the strong earning record, 5% yield coming and standing near at support level (low risk). I believe is good time to start to collect before it run far.
Target Price : Rm1.67
Happy Trading!
Regards,
Nick Loke
No comments:
Post a Comment