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EUPE is underrated

Koon Yew Yin 26 March 2021 

Eupe Corp Bhd is an investment holding company. The business of the company operates in segments that include Property Development, which develops residential properties; Chalet and Golf Operation and Management, which operates and manages chalet, restaurant, golf club, and recreation facilities; Property Construction, which constructs and sales residential and commercial properties; and Others, which rents properties, fruit cultivation and kindergarten operations. The Property Development segment generates maximum revenue for the company. Geographically the company caters its services only to the Malaysian market.

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As there is an oversupply of properties in every town and city in Malaysia, Eupe Corp concentrates in building affordable houses in the niche market. As a result, the company has reporting increasing profit in the last 3 years. 

For the financial year ending in Feb 2021, the company reported 24.42 EPS for the last 3 quarters ending November 2020.

For the financial year ending in Feb 2020, the company reported 26.45 EPS.

For the financial year ending in Feb 2019, the company reported 26.62 EPS. 

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In 2020, the company won several awards as you can see the photo below.

   

NamepriceLatest EPS X 4 = Annual EPS PE 
EUPE Rm 1.0011.46 sen 11.46 X 4 = 45.8 sen 2.2 
Oriental InterestsRm 2.609.759.75 X 4 = 39 sen6.7 
Country Heights Rm 1.39 1.9 sen loss  loss
MatricRm 1.929 sen9 X 4 = 36 sen 5.3 
SP Setia Rm 1.091.37 sen1.37 X 4 = 5.48 sen19.9 
Asia Pacific HoldingsRm 1.652.11 sen2.11 X 4 = 8.4419.5 
Mah Seng83 sen0.02 sen0.02 X 4 = 0.08 10.4 

Conclusion: As you can see from the above table that Eupe is selling at the cheapest PE of 2.2. 

SP Setia and Asia Pacific are selling at PE about 20. 

Country Heights even after reported losses, it is still selling at Rm 1.39.

Currently Eupe is selling about Rm 1.00 sen per share. The average annual EPS in the last 3 years is about 26 sen. With such a good track record, it should sell at least at PE 10 which Rm 2.60 per share.  

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