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Super Enterprise Holdings Bhd (-Ve)
SUPER Enterprise Holdings Bhd (Super) (Fundamental: 2.5/3; Valuation: 1.8/3) is a manufacturer of adhesive labels and stickers with operations in Malaysia, China, Indonesia, Thailand, and Philippines. The company also manufactures nameplates and LCD backlights.

For 1HFYMar15, revenue grew 8.9% y-o-y to RM68.5 million. However, net profit increased marginally by 0.9% to RM3.4 million. The company’s prospects appear challenging, given the highly competitive industry and constant cost-down pressure from its customers.

Nonetheless, Super’s balance sheet is healthy with net cash of RM19.4 million. This is 46.5 sen per share or 30% of the current share price of RM1.53.

The stock trades at a P/B of 0.64 times and a trailing 12-month P/E of 8.4 times. Excluding net cash, P/E stands at 5.7 times.

Super has been consistently paying dividends since FY2005. Dividends for FY2014 totalled 5 sen per share, up from 3.75 sen in FY2013, giving a net yield of 3.2%.

super_9Feb15_theedgemarkets

This article first appeared in The Edge Financial Daily, on February 9, 2015.

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