Investing in Jaycorp

Dear avid fundamental investor

This couple of days could be your last few chance to bag into Jaycorp prior before the announcement of the coming Quarter Report.

This stock is definitely not for speculation, and only suitable for those looking to hold for a good period of time, say 6 months to 1 year or more.

Jaycorp is more towards consistent dividend income with a steady growth of capital appreciation.

To recap, Jaycorp main business is furniture manufacturing and export. Jaycorp also owned their own rubberwood supply at Indonesia, and also venturing into property development at Sabah through a 60% owned joint venture company.

The past 3 quarter had been putting in amazing result, however the share price did not rise much probably due to the liquidity and also market sentiment which is still volatile with US China trade war.

But look at it, Jaycorp past 3 quarter performance

3.4 cents + 4.69 cents + 3.67 cents already made up 11.67 cents.

This quarter if can perform to 4.5 cents, that would be putting 4 rolling quarter earning at 16 cents.

Valuation for such good fundamental and dividend paying company can go PER x10 = RM 1.60

So Jaycorp still have a 60% room for capital appreciation at the current price which is below RM 1.00

WHY COMING QUARTERLY RESULT SHOULD BE GOOD

Since Jaycorp quarter result is 1 month later from the other, we can estimate how the furniture export sector is doing by looking at their financial result. If most are doing great, then that would be safe to assume that the industry sector is coming back, and most should be doing better.

As you can see, Liihen result also got stronger with higher revenue and even higher EPS.

Therefore, you can assume if there is no major shocker, Jaycorp result should be around the range of 4+ cents earning in the coming quarter report release.

Since the price had not go up much, buying now before the news come out, then you will have advantage of not needing to chase the share price when the news is out.