Perhaps it is worth adding that in first half they earnt 3% net profit margin on revenue of $62 million, which suggests a net profit of $5.4m on revenue of $180 million in FY 22. The prospectus was suggesting $130 m in FY21 and a net profit of $6.4m which is near 5% net profit margin. The prospectus seems very optimistic to me, but that suggests a PE of 9-10 if the net profit margin is 5% in FY22.
The key is where in that range of a net profit margin of 2% to 5% they can actually deliver. At the bottom they are expensive and at the top reasonably priced, though hardly cheap.
AE1 Price at posting:
19.5¢ Sentiment: Hold Disclosure: Held
