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Tickrs maintains &lsquo buy&rsquo call on Hafary and target price of 58 cents given recent pull back in share price
Analyst Jaimes Chao of Tickrs Financial has maintained his &ldquo buy&rdquo recommendation for Singapore' s leading building material supplier Hafary Holdings Limited (SGX:5VS) (Hafary), given recent share price pullback presents a better entry point for investors.
In his March 31 report, Chao highlighted that Hafary delivered &ldquo a solid set&rdquo of FY2025 results which saw revenue advancing 9.1% y-o-y to $287 million and PATMI rising 8.4% y-o-y to $29.9 million.
&ldquo Both topline and earnings were marginally below our forecast back in last August initiation report (which projected revenue of $292 million and PATMI of $33.6 million), principally reflecting a softer second half in the Manufacturing segment and elevated impairment charges on inventories,&rdquo says Chao.
Despite the miss, Chao believes that Hafary&rsquo s structural thesis of vertical integration driving margin recovery, geographic diversification broadening the revenue base, and the balance sheet deleveraging progressively remains fully intact.
&ldquo With share price at 46 cents, Hafary is trading at a trailing P/E ratio of 6.6 times and an EV/EBITDA of around 7.2 times. Those multiples are now slightly lower compared against our previous initiation report when its share price was at 48.5 cents,&rdquo Chao adds.
From his perspective, this presents investors with a wider margin of safety against a target price that is supported by an improved earnings trajectory.
&ldquo Hence, we are maintaining our &ldquo buy&rdquo rating and a 12-month target price of 58 cents, based on a P/E ratio of 8 times and revised FY2026 EPS of 8.15 cents, cross-checked by a 7 times EV/EBITDA approach and a discounted cash flow analysis,&rdquo Chao explains.
Based on Chao&rsquo s estimation, with FY2025 dividend yield of approximately 6%, total shareholder return to his target price is around 32%.
As at 2.24pm, shares in Hafary remained unchanged at 46.5 cents.
Collection observed. Great financials. Waiting for breakout. DYODD.
Big breakout today. This gem is still undervalued and yielding around 5% with potential for dividend increase. More to come!
Heavy collection. Seems like big breakout is imminent.
Heavy buying today... maybe target 65 cents by quarter end instead of year end...
Target 65 cents by year end
Hafary is running again. Three key reasons:
1. Construction industry boom - you need tiles for literally everything.
2. Undervalued. Still extremely cheap, trading at 5x P/E and yielding above 6%. Margins increasing rapidly.
3. Privatization candidate. Majority owner owns most of the shares and can trigger takeover anytime.
DYODD.
Hafary is waking up.
When is results coming out? Last year ex dividend is 15 Feb.. this year time passed v fast but money comes v slow?need dividend to eat?.
The uptrend continues, very strong buying support. Still trading at under 4x P/E, which is bound to increase. Just look at all the construction everywhere, there is a need for tiles no matter what (from reputable sources like hafary of course). Supported by healthy cash flows and yield, nothing more to ask for as an investor! Onwards an upwards to 75 cents!
Yes you are right, I just took a look at their financials and it seems fine. They also bought out remaining stakes in current holdings recently, strong free cash flow as well. I have bought in to a small position and will look to accumulate on weakness if any. Hoping can run to 70c (7x P/E) by year end!
BBBulll ( Date: 23-Apr-2024 10:57) Posted:
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CA are sufficient to cover CL so not sure what you mean... please quantify
very high debt...
BBBulll ( Date: 22-Apr-2024 22:39) Posted:
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Holding steady despite selldown all around! Still trading at just over 3x P/E which is ridiculously cheap. Hoping for special dividend this year, even without, yield is 8%!
People seem to be taking note of this champion stock today... buy ups all the way to 38c. My target is at least double the price by year-end, plus the juicy 7.5% dividend yield which is sure to be increased this year. DDYODD!
This stock really keeps on giving. So much of construction going on everywhere which means you need tiles, just think BTOs, new MRT stations, airport terminal etc. This one last year already EPS is 9+ cents, 89% controlled by insiders. Wouldn't be surprised to see if double or triple in the next year or two.
Yes, fantastic. Looking for 100% upside in the next few months!
kt3152 ( Date: 14-Feb-2024 17:07) Posted:
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XD tomorrow. Nice stock...
gametheory99 ( Date: 14-Feb-2024 16:47) Posted:
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Breaking out!! Still trading at about 3x P/E and also 9+ % yield, which is likely to be increased. Breaking out now but definitely not too late to buy I feel. Even if 8x P/E, this will be 80 cents. Huat big big!
NO trade done how to play this counter?
peterann ( Date: 03-Jan-2024 10:41) Posted:
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