Overall people have made some very good points on the performance of A2M and its future potential. A2M definitely has good prospect for increasing its market share of IF in China.
However, the future SP increase is dependent upon company being able to maintain a very high rate of Profit growth over next 3 to 4 years.
A2M will no doubt increase its profit significantly over next 12 months, however to sustain an PE ratio of 50 and a higher SP, it would need to demonstrate that it will be able to grow at rate of ~50% per annum over a period of 3 to 4 years.
This means that it would need to demonstrate to the market that in 4 years timeframe it would have NPAT of $1,100m, using current NP ratio they would need to achieve sales of $5,000m.
The question is can the company achieve this level of revenue from A&NZ + China? I don’t think that this is achievable unless the company is able to start capturing substantial market share in US & UK.
A2M Valuation, page-53
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$5.60 |
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| Open | High | Low | Value | Volume |
| $5.62 | $5.68 | $5.55 | $2.966M | 528.0K |
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| No. | Vol. | Price($) |
|---|---|---|
| 19 | 19295 | $5.59 |
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| Price($) | Vol. | No. |
|---|---|---|
| $5.60 | 533 | 3 |
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