Saturday, December 22, 2018

Aemulus Holdings Bhd (KLSE : 0181) Stock - Big Sell Down

Aemulus Holdings Bhd 






In 22 Dec 2018, Aemulus stock priced @21 cents.


Outlook Summary

#1 In 2019, World Bank forecast a slowdown in global economy.

#2 US-CHINA trade war impact is unpredictable.


Aemulus Stock Price Trend

#1 We predict AEMULUS stock will be hammered by investor for unable to grow its business.

#2 Test & Measurement Industry is highly depend on OEM/ODM factory to purchase their equipment. Most likely AEMULUS will not able to grow its revenue due to capital expenditure control.

#3 In term of design complexity, AEMULUS equipment is not something special, which unable to copy/design by China Technology Corp. In long term view, their business is not having competitive advantages over the long term.

#4 P/E 21 - Ultra High Valuation. AEMULUS stock should price @PE = 8/5 as unable to grow its business revenue steadily. Negative grow is something you should be aware of it.


Conclusion:

We rated SELL to AEMULUS stock. In our opinion, this stock worth RM0.08 - RM0.10. Holding this risky stock may not good for long term investor.