Weida - Q4 2013 announcement

Following my post on Weida back in February 2013 the share price have been pretty unexciting until the past 2 weeks following the general election result when it finally broke 1.40 to trade around 1.70.

Anyway, getting back to the fundamental.. the company have just announced its Q4 2013 result and I believe it is looking very solid.

After receiving the proceed from the disposal of its plantation land, the company is now sitting on a cash balance of RM264 million, it's market cap is approximately RM 225million as of closing today.

It's net asset is RM2.74 and current closing price is RM1.71, giving a PB of 0.62

Earning from continuing operation is approximately RM20 million, giving it a PE of approximately 11X.

Actually I was expecting more cash proceed from the disposal, having looked at the circular again I am not really sure where I missed out. Per the circular, the expected gain on disposal is RM120+million, however I can only find a RM60million gain on the 12 months P&L. Something doesn't seem consistent with the equity account presented in the circular against the current quarter announcement..
But the mistake is probably mine.

Nevertheless, given the company's upcoming venture into property development and its solid foundation in its current business, I think Weida is a decent inclusion in my portfolio at this stage. I will look to par down some stake somewhere around RM2.50 (0.9 to PB/15XPE)..