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This chart capture my attention while I was browsing CIMB research/strategy report.
A few quick comments.
1. 2008 core PE is quite cheap, 12X and as low as 2002.
2. 2008 P/BV is nothing to shout, 1.7X. 2007 was an anomaly selling for 2.5X. 2.5X was flashing warning sign but who cares when earning grew by 22% but now we pay the price.
3. Dividend yield is very attractive. 6% is something very attractive and good hedge against inflation - outperform bond or FD. Capital management has been very good.
4. Net gearing is excellence. Down to 12% in 2008 from 60% in 2001.
5. Not sure 6% core earning growth projection for 2009 is too optimistic. But but .... even earnings drop by 5-10% from 2008, 2009 is selling for 12.7X ~ 13.4X PE. It is still cheap by historical perspective.
It is really cheap is you want to own the whole business. Since company is loaded with cash, privatization activities are picking up speed. 28 proposals year-to-date.
Despite of attractive fundamentals, fund managers are extremely defensive and bearish. They are sitting on 20-25% cash vs. 16% average from 2001-2007.
Is it time? Hmmmmmmmm...................
1 comment:
hi, i am student. i am interested for the information about the figure 3:privatisation proposal in 2008 table. can you let me know how can i find this sources?i need to used for my thesis reference.thanks a lot...cause this is urgent and waiting for ur respondent.i will appreciate ur kindness. my hotmail is jennykhor_98@hotmail.com
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