Ogawa- takeover offer at RM1.05

Yesterday Ogawa was suspended from trading (here). Today, it announced that it has received an offer to buyout all its outstanding shares at RM1.05 apiece from Comfort Enterprise (Hong Kong) Company Limited (here). My earlier posting was a wasted effort as this company may soon be de-listed from Bursa Malaysia.

However, this takeover is a sign that our listed companies are now trading at pretty attractive multiples after our MYR has dropped by 10% over the past 2 months. So, this is another possible angle to screen for stocks to buy- for in addition to stocks involved in export businesses which would obviously benefit from a weaker MYR. 


 Chart 1: Ogawa's 120-min chart as at Sep 10, 2013_11.10pm (Source: Quickcharts)

Looking back, Ogawa was trading at less demanding multiples when compared to its direct competitor, OSIM of Singapore. However, OSIM is 10-time bigger than Ogawa. For FY2012, OSIM reported a revenue of S$616 million & net profit of S$93 million (here). It has cash in hand of S$262 million. Its EPS was S$0.13 and its NTA p.s. was S$0.32. Thus, OSIM (at S$1.94) was trading at a PE of 15 times or a Price to Book of 6 times. On the other hand, Ogawa was trading at a PE of 7 times & PB of 1.2 times.

 
  Chart 2: OSIM's weekly chart as at Sep 9, 2013 (Source: Yahoo Finance)

Note:
In addition to the disclaimer in the preamble to my blog, I hereby confirm that I do not have any relevant interest in, or any interest in the acquisition or disposal of, Ogawa.