Huge Valuation Gap: OMH vs Press Metal

The management decision to do a secondary listing on Bursa is indeed a well considered one. From the comparison of the two companies, you can immediately spot the vast differential in valuation; whereas Press Metal is 3x more profitable than OMH (based on FEY 2019), whereas the stock valuation of Press Metal is almost 20x more than OMH. Although the ASX investors have not taken much notice on OMH and this valuation gap, I believe the BURSA market will ultimately adjust OMH valuation to match those of Press Metal. That is when with sufficient press coverage and equity research, OMH will shine through (and like what King has said, it will fly off like a ROCKET). The investors from the same market (Bursa) will notice the obvious valuation gap. The Bursa market will likely lead the pricing and ASX will follow. Earlier investors now should see a few baggers from here.

	OMH (ASX)		Press Metal Bhd (KLSE)
Business	Mining, Smelting, Trading		Smelting
Product	Manganese, FeSi, MnSi		Aluminium
AUD Mil	FYE Dec 2018	FYE Dec 2019	FYE Dec 2018	FYE Dec 2019
	AUD mil	AUD mil	AUD mil	AUD mil
			2.8	2.8
Total Loan	513	512	1,066	1,300
Cash Balance	92	63	71	130
Net Debt	421	449	995	1,171
NTA	388	424	1,142	1,309
Market Capitalisation	273	273	5,393	5,393
Enterprise Value	694	722	6,388	6,564
Revenue	1,510	1,026	3,275	3,144
EBITDA	340	155	516	439
NPAT	162	56	221	169
Dividend Yield	14%	2.7%	1.8%	1.4%
PE Ratio	1.69	4.88	24.43	31.92
Net Debt / EBITDA	1.24	1.06	1.93	2.67
EV / EBITDA	2.04	4.66	12.37	14.95
Price / Book	0.70	0.64	4.72	4.12
Net Debt / Book	1.09	1.06	0.87	0.89
Sales / Price	3.89	2.42	2.87	2.40