15 November 2007

Crest Builder Shares Undervalued.

An article in The Star today highlighted the clear undervaluation of our share price; trading at around 4.5 times (according to Kenanga) P/E ratio. I personally agree on this; however, I dont think I'm allowed to comment much on the stuffs. You would need to read for yourself to find out more.
SHARES of Crest Builder Holdings Bhd, a construction and property company, are very undervalued based on the firm's potential profits next year.

The stock is trading at a multiple of 4.5 times its 2008 earnings, Kenanga Investment Bank Bhd said in a research report.This compares with an average multiple of 15 times for construction firms with small market values.Shares of Crest Builder have gained 10 per cent so far this year, underperforming the broader market's 26 per cent rise in the same period."Crest Builder is undoubtedly a deeply undervalued construction and property stock," it said in the report.

The company's main business is construction, with an order book of some RM500 million. However, it ventured into property development in 2005 to boost income.It is currently bidding for government and private jobs worth more than RM1 billion.The latest project that it won was the construction of superstructure works for Gateway Kiaramas, a high-end service apartment in Mont Kiara.


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