Wisynco Group Limited Equity Report

Valuation Summary

We used the forecasted earnings and book value for FY2021 to derive the stock’s fair value through the price-to earnings (P/E) and price-to book (P/B) valuation methods. Our forecast for FY 2021 assumes continued weak macroeconomic conditions, particularly among households.

We forecast that Wisynco will earn approximately J$3.0 billion In FY 2021, translating to an estimated Earnings Per Share of J$0.80. We expect book value to increase in FY 2021 to J$15.36 billion with an estimated book value per share of J$4.10. Given the industry peer group average P/E and Wisynco’s 3-year average P/B of 18.16X and 5.05X, respectively, our estimate of the fair value range for Wisynco between J$14.54-J$20.69. Utilizing the average of the range, Wisynco has a fair value of J$17.61. indicating it is undervalued by 10.30% when compared to the rent price of J$16.05. Given the Company’s underlying economics coupled with the Global initiative to re-open economies and take necessary steps to minimize disorder amidst the COVID-19 pandemic, we recommend this stock as an OVERWEIGHT.

Last Price (J$) $16.07
Year to Date Return -31.06%
Dividend Yield 0.56%
Price/Book 4.64
Consensus Forward P/E 22.63
Estimated Fair Value $17.61
Total Return Upside 10.30%
Recommendation Overweight

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