BPPLAS has 2 manufacturing locations within the Sri Gading Industrial Estate in Batu Pahat, Joho. These factories have a total built-up area of 295,000 square feet and a production capacity of 6,500 metric tons per month.
Table: BPPLAS's last 8 quarterly P&L
Historical Financial Performance
BPPLAS's revenue has been rising steadily over the past 7 years. Profits jumped in FY2015 & FY2016 due to favorable forex regime. This benefit has dissipated as our RM rebounded in 2017. However, RM has weakened somewhat lately and this may help to boost the bottom-line for BPPLAS.
Graph 2: BPPLAS's last 11 years' P&L
As at 30/6/2018, BPPLAS's financial position is deemed healthy with current ratio and gearing ratio at 6 times and 0.2 times. Cash in hand amounted to RM36 million or RM0.19 per share.
BPPLAS (closed at RM1.00 yesterday) is now trading at a PER of 11 times (based on last 4 quarters' EPS of 9.1 sen). If the cash in hand is deducted from the share price, then BPPLAS's PER will be lowered to 9 times. BPPAS also paid a decent dividend totaling 4 sen last 4 quarters- giving it a dividend yield of 4%. Overall, BPPLAS is deemed fairly attractive.
BPPLAS has tested and rebounded off its long-term uptrend line, SS at RM0.85 in April. It is still in an intermediate downtrend.
Chart 1: BPPLAS's monthly chart as at Aug 1, 2018(Source: Shareinvestor.com)
Chart 2: BPPLAS's mweekly chart as at Aug 1, 2018(Source: Shareinvestor.com)
Based on good financial performance & position and relatively attractive valuation, BPPLAS could be a good stock for medium-term investment. However its upside potential depends on whether it can break above the intermediate downtrend. If the share price can go above RM1.10, the stock may begin its next upleg.
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