SHM 0.67% 75.5¢ shriro holdings limited

Ann: Trading Update, page-3

  1. 703 Posts.
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    Hello,

    Looking at this company for the first time, just wondering about the very strong expected result. An of EPS of 19cps for this FY (18m/96m) It seems much higher than previous years and also significantly higher than the current market valuation indicates (e.g. pe ratio or forecast yield)

    I feel like I am missing something. The tone of most communications is very conservative, but the numbers speak otherwise. I guess a lot of the result is linked to jobkeeper and cost savings initiatives. Revenue has grown (despite Covid) but the real uptick is in margin.

    Is the general opinion that these cost reductions are not sustainable and results will return to trend - or has SHM turned a corner in it's cost profile - and just have conservative management?

 
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